The PowerShares Nasdaq 100 QQQ ETF (NASDAQ:QQQ) and FANG stocks (Facebook Amazon Netflix Google) have been underperforming for weeks now.
And the QQQ now finds itself sitting on top of an important confluence of price support. This will likely lead to a bounce, but discipline is advised here.
This price support area includes trendline support off the lows since January as well as the rising 50-day moving average at 138.31 and a short-term trendline off the recent lows at 138. While the chart may appear to be a potential head-and-shoulders (H&S) top, the shoulders are off kilter and the neckline appears to be too steep.
Anyway, a break of the 138 area could lead to a pretty good pullback for the highflying ETF. And this would likely pull many key large cap tech stocks lower, including Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), Alphabet (NASDAQ:GOOGL).
Tread lightly here as there is little chart support until the 129 to 132 area and the 200-day is way down at 126.
PowerShares QQQ ETF Chart
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