September 27, 2004

QQQ and its 50dma

The image “http://www.arrove.com/qqq01.jpg” cannot be displayed, because it contains errors. The QQQ is sitting just above its 50dma of $34.32
The 200dma was resistance on the upside - it is important that it should not break the 200dma. If it does, it will be bullishness that I am not expecting.
I would not be surprised to see some support at the 50dma. I am not expecting the 50dma support to hold and I think the QQQ will drop below its 50dma again.
Eventually I expect the QQQ to trade to a lower low below $32.35
Having said this, it is important to keep your risk limited because I also expect that everything will not go as expected.

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