7/4/2017 Nasdaq 100 (QQQ) update

Recent FANNG/FAMNG/Nasdaq 100 sharply down makes QQQ traders/investors in a hurry to exit or avoid these stocks and ETF. The following analysis is trying to get some ideas on how current Nasdaq 100 is devoloping.

First, let's look at chipset leader: applied materials (AMAT).

1. all weekly technical indicators are negative
2. right on 20 weeks MA support around 41
3. since early 2016 bottom out, the price has not violated the 20 weeks MA support

   

AMAT weekly chart

Second, let's look at one of FANG: google (GOOG)

1. all weekly technical indicators are negative
2. right on 20 weeks MA support around 889.88
3. since 2017 in the uptrend, the price has not violated 20 weeks MA support

GOOG weekly chart

Last, let's look at Nasdaq 100 ETF: QQQ.

1. all weekly technical indicators are negative
2. above 20 weeks MA support around 135.17
3. since early 2017 in the uptrend, the price has not violated 20 weeks MA support.

In summary, the 20 weeks MA act as a good and possible bounce level for Nasdaq 100. Nasdaq 100 future September contract: NQU7 20 weeks MA is around 5558.  If the 20 weeks MA failed to make suport, next support is the gap fill around 132.5, if the gap fill still failed to support, the worst case 50 weeks MA 125 is the last and must hold level for bull. 

Let's look at Nasdaq100 breadth. 

Nasdaq100 breadth has fall into the oversold zone, very close to 2016 Feb low, June low, Nov low, already made new in 2017. It is a contrarian signal. Within anytime, QQQ will bottom out.

My personal opinion is not for investment purpose, but for education and illustration purpose.