Charting the Markets: QQQ Is Heading for All-Time Highs
The tech-heavy index has been erratic since summertime but is ready to close 2024 with a strong performance.
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It is earnings season, and the biggest and brightest of them all will hit the confessional in the coming weeks. We are looking forward to hearing from the big-tech names, how they finished up and what their outlook will be in the months ahead. 2023 was a scorcher for the Nasdaq 100 QQQ, and this year has been a solid performance as well, just not as good.
That's fine, actually. The law of large numbers eventually catches up and valuations do matter. If the stock market gets too rich in value, we'll see investors starting to sell these names and move their money elsewhere, until such time the index becomes more attractive.
The chart of the QQQ is pretty strong and is pushing up against the all-time highs printed back in July. Can it get there before year-end? We believe so, and with that, achieve a milestone by surpassing the $500 mark.
The trendline is following the 14-period McGinley dynamic, a strong buy. MACD is on a buy signal, candles are blue and have been most of 2024 (strong buy signal). Money flow remains robust, the CMF at the bottom shows how healthy the big money flows have been.
Keep an eye out here on this index over the coming weeks, we believe the QQQ could be the big winner into the holiday season as investors chase after their beloved tech stocks.
At the time of publication, Lang had no positions in any securities mentioned.
