Tech Stocks Haven't Done This for Months
Tech stocks or QQQ did something last week that it hasn't done since April 3rd. It closed below the 20-day exponential moving average.
I've been using this moving average to keep me long technology-related names, as well as concentrating on long side setups for swing trades.
Friday's negative close, along with the declining momentum (RSI) was a warning sign to be cautious coming into this week.
Also, with technology heavyweights Facebook, Amazon, Alphabet, and Apple reporting earnings this week, volatility and uncertainty are pretty much guaranteed.
I think $250 is an important support level to watch moving forward and if we can end the week above, I think this rally has a solid chance of continuing throughout August.
SIGN UP HERE to receive Profit From Trends directly to your inbox once a week.