Are you ready for a make or break moment in the tech trade? This week, the Invesco QQQ Trust ETF is poised at a critical juncture above its 200-day moving average. For those unfamiliar, the QQQ tracks the Nasdaq-100 index, comprising the 100 largest stocks in the Nasdaq Composite, including heavy hitters like Nvidia and Apple. The 200-day moving average is an essential tool used by traders and chart analysts to assess an asset’s long-term trend. If a stock breaches this level, it could indicate potential trouble ahead.
BTIG chief market technician Jonathan Krinsky noted this critical juncture by stating, “QQQs Looking Like Another 200 DMA Test.” He further emphasized that any early weakness this week may lead to a test and reclaim of the 200 DMA on QQQs, signaling a tactical low. As of now, the fund seems to be holding up, with the QQQ trading around $452 per share in the premarket on Monday, while the 200-day moving average was at $441.67.
This technical assessment comes on the heels of a challenging week on Wall Street, as concerns over the economy were reignited by new jobs data and manufacturing reports. The QQQ saw a 5.8% drop, its most substantial weekly decline since November 2022. Investors are bracing themselves for more market-moving data this week, including the consumer and producer price indexes.
In other news from Wall Street, Morgan Stanley made a notable downgrade, shifting Church & Dwight to equal weight from overweight. Analyst Dara Mohsenian highlighted, “From a company perspective, we are very forthright that there are no home runs in our coverage here from our vantage point.” Despite this, there is optimism around OW rated Coca-Cola and Colgate as top picks in the long term, with short-term upside potential seen in EW rated Clorox and Keurig Dr Pepper.
As we navigate through this crucial week in the tech trade and beyond, stay tuned for valuable insights and updates from the Extreme Investor Network. Our unique analysis and expert advice will guide you through the ever-changing landscape of investing, helping you make informed decisions and stay ahead of the curve. Join us on this exciting journey towards financial success and empowerment.