TRADE SETUP

QQQ triple top rejection

Where do we stand fundamentally?

The Nasdaq 100 (NDX), which QQQ tracks, closed lower due to escalating tensions in the Israel-Iran conflict and weak retail sales data. This contributed to a risk-off sentiment among investors, with QQQ also declining.

The QQQ is being rejected by the upside resistance at 538 and is turning lower, potentially revisiting the 516 level.

For the rally to continue, we need a sustained breakout above 538; however, this could represent a potential triple top. I am inclined towards a short-term short trade entry, as the overall market sentiment remains fragile due to geopolitical risks and the potential for inflation to rise again with the increase in oil prices. A break below 516 could open a test of the next support 462, in the medium-term.

I am taking a near-term short-trade entry with an SL above 538 to target 460. You can buy put options as well. If the trade is stopped, reverse it to a long trade entry.

QQQ trade setup