QQQ: Long-Term Scenarios

Published 09/19/2016, 11:40 AM
Updated 07/09/2023, 06:31 AM

PowerShares QQQ Trust Series 1

QQQ: Working On 2 Head-and-Shoulder Tops

On a super long-term chart, you can see that QQQ began a megaphone (navy blue in chart) back in 2006. It is now completing the melt-up 5th wave of that megaphone before a trip back to its VWAP at roughly 42.

The move up out of the 2008/2009 lows has formed a rising megaphone (red) inside a rising megaphone (bright blue). Each rising megaphone needs to complete with a H&S or megaphone top of its own.

The green scenario is the fastest way I can see at the moment for QQQ to complete a simple H&S top for both rising megaphones and to break out back down to the navy megaphone VWAP.

The purple scenario is another slower way the tops could play out.

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