Don't Ignore This Chart!

QQQ Sets Sights on All Time High with Channel Breakout


The surge in stocks entered its fourth week with QQQ extending its channel breakout. The chart below shows the ETF surging earlier this year and then embarking on a correction with a falling channel into June. This correction clearly ended with the breakout near 110 and this zone now becomes the first support level to watch. A strong breakout should hold so a break back below 108 would call for a re-evaluation. With the breakout dominating the chart right now, QQQ is set to challenge its all time high around 115. 

The indicator window shows the price relative (QQQ:SPY ratio) falling the first half of the year and turning up the last few weeks. The overall trend is down, but this should not detract from the breakout, which is unequivocally bullish. QQQ is performing well, just not as well as SPY. And finally, the PerfChart below shows the percentage gain for QQQ and the top five stocks over the last 16 days. Facebook and Alphabet are leading the charge with double-digit gains. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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