QQQ - QQQ: The Nasdaq 100 Could Face A 30% Decline

2024-06-25 13:57:43 ET

Summary

• The Invesco QQQ Trust ETF is extremely overbought, with a risk of a significant correction, possibly up to 30% based on historical data.
• Rare overbought conditions met only a few times in almost 40 years, suggesting potential sideways trading or significant correction for QQQ.
• Technical analysis indicates a potential end to the recent rally in QQQ, with a possible 20% to 30% correction leading to prices last seen in mid-November.

The Invesco QQQ Trust ETF ( QQQ ), a proxy for the Nasdaq 100 ( NDX ), has reached extremely overbought conditions over the past several weeks. Technically and fundamentally, there's a risk of a significant correction, which could lead to a drop of about 30% if history is a guide....

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