The Nasdaq 100 and ETF (QQQ) is on our watch list given the late snapback that helped prices close positive for the day.
This comes despite poor showings from the Dow Jones Industrials and S&P 500 on Monday.
Given the extent of the domination of Technology in many key stock indices and ETF’s, many within the media opined that Monday was actually a positive in strengthening. And many pointed to Tech stocks being oversold… so Monday could be the low.
However, upon a bit closer scrutiny, this still looks unlikely technically as momentum is not oversold. As well, the downtrend on the Nasdaq 100 and ETF $QQQ remains very much in place for now.
Structurally, prices are in worse shape, not better.
Overall, until downtrends can be broken (at a minimum), it’s thought that any “Turnaround Tuesday” would represent a chance to buy implied volatility and sell into Tech stocks which have bounced, but have not yet improved structurally.
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Twitter: @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
