Mar
Will NASDAQ Lead the Rally? (QQQQ)
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The NASDAQ made a solid move to the upside yesterday breaking through the resistance from the last two weeks. Is this the push needed to take a run at the January high and beyond? That is the million dollar question facing investors short term, leadership. Since hitting the high on January 19th the NASDAQ pulled back 8.5%. We were stuck near the 50% retracement level until yesterday’s move towards the January highs.
Why the focus on the NASDAQ? It has been the leader off the lows in February and I would look for it to provide the leadership back to the upside if we are to regain the uptrend. The semiconductors will play a key role as well and they gained 3.1% yesterday on the move. We now look for a follow through to the upside and strong volume to assist the move.
As you can see the move above the $44.80 level was key along with the 50 day moving average. Watch for the follow through as the index moves higher. The QQQQ is the ETF for the NASDAQ 100 index. As with every opportunity you must first define your strategy for investing. The establish the entry point, the stop and the target based on the strategy. Discipline is the key to successful investing. Play according to your risk and your goals.
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