All Things Created “Equal”?
Imagine if one was able to see how the Nasdaq 100 stocks would act if each component were trated the same? Well at ChartSmarter we have you covered and today we take a peek below at the daily chart of the QQQE compared to the QQQ. One can see since mid July the QQQE (blue line) has led even if it was just ever so slight against the QQQ. The discrepancy widened in its favor in late November into early December, but the last 2 weeks has acted uncharacteristically falling sharply as the QQQ whose pullback was more mild. Is this something ominous, a canary in the coal mine to some fragility within technology overall? It is hard to say, but this recent push into the mega caps is speaking to investors displaying a “defenisve” posture. Peering at the candlestick charts, QQQ is technically superior trading above its 50 day SMA and it has done what it needed to with a bullish piercing line candle last Friday and added another .8% Monday. I think this can trade toward the 535 area which may encounter some trouble with the doji there on 12/13, and the bearish harami on 12/16. As the QQQ rose almost 1% Monday the QQQE was flat. Interestingly notice the QQQE has acted poorly against the SPY for at least 6 months. This needs to hold the very round 90 number on a CLOSING basis going into year-end. Give it credit for the “stick save” at the 200 day SMA last Friday.