Invesco QQQ Trust Series 1 (QQQ)

[frenchee]

Intermediate-Term Analysis--7 Oct 05

The following analysis used a weekly compression on the chart shown which is descriptive of the intermediate-term trend.

The next price target appears to be between the swing low of late June and the lower Bollinger Band. These targets are 36.55 and 36.81, respectively. The five major reasons I'm bearish for the intermediate term are:

1) The Directional Movement System shows the Negative Directional Indicator is rising and crossed above the Positive Directional Indicator.

2) Price closed this Friday under the 21-week SMA. This implies a price target of the lower Bollinger Band.

3) All momentum-based indicators on a sell signal with the exception of the Chaikin Money Flow indicator which is netural.

4) Volume on down weeks is greater than volume on up weeks. More conviction to the bears and distribution likely happening.

5) This last week showed prices being down and volume being decisive. This pattern suggests the move will have legs.

Bottom Line: Use strength to sell into if long or add to short positions.