QQQ Price Action Now Stretched from 18-Week Moving Average

Although EquiPredict Analytics is not a technical analysis service (past-looking), it is prudent to look at the past from time to time to understand probabilities for the future.

The popular ETF QQQ which directly tracks the Nasdaq has now become overstretched from the 18-week moving average and created an “air gap”; and one of our proprietary indicators is flashing a “caution” sign (see yellow circles on chart below).

Since 2024, when QQQ has reached overstretched levels as indicated by the indicator below, institutions have discontinued aggressive buying and consolidation/selling has taken place not long afterward.

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