The Nasdaq 100 Trust (Nasdaq: QQQQ) is hoping that a move toward its
50-day moving average is just another opportunity to buy on the dip.
Chart Courtesy of StockCharts.com
If you've waited until QQQQ has fallen to its 50-day moving average
since the market bottom in March in order to buy shares, you've had
three excellent opportunities. The question is whether the dip that
seems to be unfolding will be as good as the other three for the
bulls.
Support is at the 42.50 area, but if that gives then 39 would be support. The
MACD and RSI oscillators suggest that we will have some short term weakness which
will lead to a test of at least one of these two support levels.
Looking at the broader picture, volume is likely to shrink for the rest of the
year, and volatility may actually increase some, due to the lower volume and
the potential for more geopolitical surprises.
Still, for trend followers, the 50-day moving average on QQQQ still holds the
key and may provide another buy on the dip opportunity.
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