TRADE SETUP

Where do we stand fundamentally?

Yesterday, April 8, 2025, the White House confirmed plans to impose 104% tariffs on Chinese imports, effective at midnight Eastern Time, contributing to a turbulent day on Wall Street. The Dow dropped 300 points, and the S&P 500 edged closer to bear market territory. While specific performance details for QQQ weren’t highlighted in isolation, the Nasdaq Composite, which QQQ closely mirrors, has been part of this broader market reaction. Earlier reports from this week noted the Nasdaq entering bear market territory, with tech Mega caps losing $1.8 trillion in value over two days due to tariff-related fears, as reported on April 4.

QQQ is reaching the long-term support of 400. This is now a strong uptrend continuation support with a strong fibo retracement 50% support as well. This can produce at least a temporary bounce if not a reversal upside. If we will see a brea below 400 next downside support is 360.

Only in the case of a strong confirmed break above 430 will lead to an immediate continuation upside and a significant reversal higher for a possible retest of 500.

_{I am taking a near-term long-trade entry with an SL below 400 to target 500. You can also trade it with options by buying call options.}