Not Quite End of the Line

The QQQ ETF is back down to the key $352 level, as indicated below on its daily chart with the arrow. Indeed, large cap tech has oscillated around this level as support, then resistance, before gapping above it on the Russia news yesterday. 

Currently, we are teetering on losing it again but the jury is still out in regards to that test. While $352 is not quite end of the line for the Nasdaq ETF, it does offer a dividing line of sorts between two prevailing schools of thought right now.

The first school is that we are simply experiencing a sloppy sideways market during options expiration week amid a market full of uncertainty. No directional moves on the indices are likely to be seen for a while. Another view is that we are still in downtrends with all major indices below their respective 200-day moving averages, and risk remains lower. 

Thus, I am using $352 as a guidepost more than anything else to define lines in the sand going forward, especially as earnings volatility persist in growth stocks with RBLX getting clubbed while UPST sharply rallies, for example. And this is all in front of major chip makers AMD and NVDA reporting tonight. 

Also keep an eye on DWAC as a special situation on the long side, as the Trump SPAC likely gets hoopla leading up to his social app launching apparently next week.