QQQ levels to watch
Another interesting day... Facebook played out less than desirable but the writing was on the wall. FB expected to and did beat earnings but not in an impressive fashion. Revenue growth was up a whopping 25% year on year BUT cost and expenses rose a stunning 34%. In the post market session, FB fell by roughly 7%. We will see how this shape the market.
Conversely, I forgot Microsoft was posting earnings as well. MSFT beat earnings by 14% and revenue increased by 3.4% resulting in a 3% spike in price post market close. Will this balance FBs inefficiencies?
Tonight in futures will be interesting as we enter into a cross roads of many technicals.
Bottom Up:
1) RSI is neutral - could go either way
2) MACD is slightly bullish but trending overall neutral
3) Upward Trend Line (white) has now been added to show additional levels of support beyond the horizontal support levels. I lean towards (near-term) the trend line holding barring the horizontal support levels giving way.
4) EMAs sit in the right position with the red 5 EMA above the white 20 EMA
Caution: A break below the trend line will give way to further downside. Post that, there may be a while before QQQ finds other support
There are 3 scenarios with levels here to keep an eye on.
1) Preferred: Price breaks down and price action bounces off the 219.30 support line and rallies back to all time highs 225.15
2) Price bounce off 222.75 support line and rallies back to all time highs 225.15
3) Price breaks down and price action bounces off the 219.30 support line and rallies back to double top at 222.75 and back to trend line
I lean to preferred #1 due to Microsoft strong performance and an expected strong performance by Amazon earnings enticing investors to buy and drive the price up before and after earnings on Thursday and Friday.
Conversely, I forgot Microsoft was posting earnings as well. MSFT beat earnings by 14% and revenue increased by 3.4% resulting in a 3% spike in price post market close. Will this balance FBs inefficiencies?
Tonight in futures will be interesting as we enter into a cross roads of many technicals.
Bottom Up:
1) RSI is neutral - could go either way
2) MACD is slightly bullish but trending overall neutral
3) Upward Trend Line (white) has now been added to show additional levels of support beyond the horizontal support levels. I lean towards (near-term) the trend line holding barring the horizontal support levels giving way.
4) EMAs sit in the right position with the red 5 EMA above the white 20 EMA
Caution: A break below the trend line will give way to further downside. Post that, there may be a while before QQQ finds other support
There are 3 scenarios with levels here to keep an eye on.
1) Preferred: Price breaks down and price action bounces off the 219.30 support line and rallies back to all time highs 225.15
2) Price bounce off 222.75 support line and rallies back to all time highs 225.15
3) Price breaks down and price action bounces off the 219.30 support line and rallies back to double top at 222.75 and back to trend line
I lean to preferred #1 due to Microsoft strong performance and an expected strong performance by Amazon earnings enticing investors to buy and drive the price up before and after earnings on Thursday and Friday.
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