Nasdaq Weakness Continues: $580 Now the Line in the Sand

PeterDiCarlo
03-23

$Invesco QQQ(QQQ)$

Sadly, our expectations have been playing out. Since the THT Long Term model removed its bullish outlook last month, Nasdaq has continued to sell off.

We are now approaching the final liquidity zone around $580. With the Monthly BX printing dark red, the odds of another 5% to 10% correction are the highest they have been in over a year.

My short term expectation is a bounce this week, followed by another likely rejection in the $600 to $610 area.

There is a major volume gap between $580 and $520. If this liquidity level is swept or breaks, I would expect a sharp sell off over the next few weeks or months as price moves through that gap.

That said, we do not short. We stay focused on trading our system and rotating into sectors and stocks that continue to meet our criteria.

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