10 Signals that Show $QQQ Could Reverse
Chart Courtesy of StockCharts.com

This could be a $QQQ reversal off a near term bottom in the short term based on the today’s price action. I entered $TQQQ today at $97.38 after the confirmed reversal through the 200 day SMA. I will let price be my guide whether I am stopped out with a close under the 200 day or letting my profits run higher.

Here are the five things I like to see for me to buy dips and then start trading  the long side again.

Here are the 10 signals that show $QQQ could be reversing from the near term lows in price.

  1. First, the $QQQ has to reverse and go higher and reject the RSI in the 30s. Lows were rejected today.
  2. $QQQ retook the 200 day SMA triggering a long term buy signal.
  3. This rally off the lows happened on increased volume today. That is bullish.
  4. A big bullish candlestick today showed that bulls won in the short term.
  5. A rally back over the previous day’s high will show buyers at higher prices. I am still waiting for this.
  6. This reversal happened during the Brexit fears. That surprised a lot of people.
  7. $TLT reversed today from a very overbought 74 RSI with a candlestick reversal, this could prove bullish for stocks.
  8. $QQQ still needs to close over the 10 day EMA to show short term momentum.
  9. $QQQ still has to break and close over the 50 day as it is currently acting as resistance.
  10. A bullish MACD and Slow Stochastics cross over is still needed to confirm a reversal from the  downward trend. Slow Stochastics appears to have bottomed out and to begin reversing.

Bulls won the day and stopped the falling prices in stocks but have a lot left to prove. Good risk/reward for the long side developing here on the long side.

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.