Slope of Hope Blog Posts

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Expect the Unexpected?

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The market, particularly the tech-heavy Nasdaq 100 (QQQ) continue to push higher this week. The rally that began on December 19th has barely paused for a breather. But, if you look closely at the last four trading days it seems as though we are setting up for a move lower as the ETF seems to be struggling with strong overhead resistance.

Most of the highly- liquid ETFs I follow have pushed into a short-term overbought extreme, with several actually reaching a very overbought extreme.

Typically, when we see this type of price action, that is an upside gap (1/3) into overbought to very overbought territory at strong overhead resistance, a short-term reprieve is to be expected.

However, if you recall, I expected to see  a reprieve last week, but the gap in the tech-heavy Nasdaq 100 has yet to close.