{"id":2749,"date":"2013-04-23T06:05:58","date_gmt":"2013-04-23T10:05:58","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=2749"},"modified":"2022-04-06T15:07:25","modified_gmt":"2022-04-06T19:07:25","slug":"nasdaq-qqq-rally-light-volume","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/nasdaq-qqq-rally-light-volume\/","title":{"rendered":"Is This Nasdaq Rally For Real? Here’s How To Know… ($QQQ, $SMH)"},"content":{"rendered":"

Led by solid gains in the Nasdaq 100 and Nasdaq Composite, stocks closed higher across the board yesterday (April 22). The Nasdaq Composite easily outperformed the S&P 500 on Monday, signaling that money is beginning to rotate out of the S&P 500 (and Dow) and into the Nasdaq. This is a positive sign for the bulls, but there is one main concern about this — a lack of higher volume.<\/p>\n

Over the past two sessions, the Nasdaq has climbed about 2.5% off last Thursday’s low. However, volume declined in each of those past two sessions, which means the move was unconfirmed by institutional buying<\/em>. The Nasdaq may need a bit more time to consolidate, as there is quite a bit of overhead resistance.<\/p>\n

Looking at the daily chart of the Nasdaq 100 ETF ($QQQ)<\/strong> below, we see price action running into resistance clustered around the $69 level:<\/p>\n

\"$QQQ<\/p>\n

The five weeks of stalling action near $69, along with the 10 and 20-day moving averages, make for quite a bit of resistance. However, if $QQQ can power through this level without further consolidation, it would be a very bullish sign.<\/p>\n

Market Vectors Semiconductor ETF ($SMH)<\/strong>, an ETF we have been bullish on since the initial March 28 analysis on our trading blog<\/a>, continues to chop around near the pivotal, intermediate-term indicator of its 50-day moving average, with support coming in around $34.50 last week.<\/p>\n

If $SMH can set a higher swing low and close above Monday’s high on a pick up in volume, then it may attract enough buying interest to break the short-term downtrend line and test the highs of the base:<\/p>\n

\"$SMH<\/p>\n

In today’s Wagner Daily<\/i> newsletter<\/a>, we are stalking $SMH for potential swing trade buy entry if<\/i> it meets our technical criteria (looking to add to our existing position on strength). Subscribing members should note the details for $SMH in the “watchlist” section of today’s report. Presently, all five of the open positions in our model trading portfolio (3 ETFs and 2 individual stocks) are showing unrealized gains.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Led by solid gains in the Nasdaq 100 and Nasdaq Composite, stocks closed higher across the board yesterday (April 22). The Nasdaq Composite easily outperformed the S&P 500 on Monday, signaling that money is beginning to rotate out of the S&P 500 (and Dow) and into the Nasdaq. This is a positive sign for the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-2749","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=2749"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2749\/revisions"}],"predecessor-version":[{"id":11600,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/2749\/revisions\/11600"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=2749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=2749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=2749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}