Invesco QQQ Trust Series 1 (QQQ)

[frenchee]

QQQQ Technical Analysis for 26 Apr 05

1) ADX is over 20 and trending up. Suggests to me to follow trend-based indicators versus momentum-based indicators.

2) Heavy volume associated with the 36-36.40 area suggesting it could be a near-term resistance area.

3) Since the downside gap a little over a week ago, the short-term trend is sideways with an upward bias. However, volume on down days is stronger than volume on up days. Moreover, the trend in volume isn't confirming the upward bias in price either. Possibly short sellers are covering positions, causing a rally, and money is leaving the marketplace.

4) QQQQ is trading below its 21-day moving average which suggest its intermediate-term trend is down. I don't take positions against the intermediate-term trend as a general rule.

5) MACD and Parabolic SAR still in sell configurations.

6) Chaikin MF and Chaikin Oscillator still in sell configurations too.

The weight of the evidence suggests let the short ride. Even though a sharp rally is overdue, it's probably safe to add to short positions when QQQQ trades above its 5-day SMA but below its 21-day SMA. In the case now, that would be between 35.17--35.89.

Three conditions would cause me to cover the short:

1) Price touches the Parabolic SAR and it reverses;
2) MACD crosses the zero line;
3) 36 is taken out on heavy volume.