QUAD WITCHING DRIVING AI STOCKS INCLUDING NVIDIA HIGHER, MORE ONE MONTH LOWS THAN HIGHS IN NASDAQ
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Deteriorating Internals
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The chart shows that Nasdaq 100 is way overextended above the support zone.
- Overextended markets work only as long as momentum stays high. If momentum stops, the market tends to pullback.
- The chart shows that the volume is low as the market drives higher. This indicates lack of conviction.
- RSI on the chart shows Nasdaq 100 is very overbought. Risk and reward are two sides of the same coin.
June 20, 2024