What an “interesting” week here for Wall Street. The Federal Reserve minutes released on Wednesday caused nasty panic selling across the board, with technology taking the brunt of it.
The weekly QQQ chart has spent the last six weeks trading in a wide, volatile range. It pushed down to the bottom-end, and as soon as it looked like the bears had control, the QQQ ripped right back to the upside.
At the close on Friday, the QQQ held support at the bottom of the range, which points toward the potential of yet another violent (for bears) bounce back to the upside. We won’t know more until Monday, but make sure to not “marry your ideas” here. If that big level of support ends up breaking, it could certainly see technology, and the market, trading lower.
Our major focus at the moment is on managing open positions as opposed to aggressively looking for new exposure. There continues to be solid structure within the semiconductors (SMH). As far as big technology goes, AAPL remains king-of-the-hill in terms of trend, structure, and momentum properties.
As goes the market, goes the stocks. Tech stocks are so heavily weighted in our market indexes that a break of support for that group could lead to downside in other groups. Our suggestion for now is to respect the importance of the QQQ and patiently wait for confirmation of its next move before jumping into new long positions.
We’ll cover a handful of interesting setups and charts in Sunday’s video and see if our scan results can offer any clues as to where the next round of opportunity could be.
Stay Focused!