Last week we saw cash rotating out of big technology, specifically the QQQ, into energy, the industrials, and the financials. This little bit of rotation has left the QQQ trading at key support, with a daily squeeze that could potentially fire to the downside.
On the weekly chart, the 21 exponential moving average (EMA) has been the key level of support throughout this entire push, and last week the QQQ closed below it…
If the QQQ loses this level of support at the weekly 21 EMA, we could see a nasty drop.
Keep in mind that we don’t need to trade big technology and big semiconductors, unless of course the structure is there. Instead, let’s see what names do well with rises in interest rates.
Stay Focused!