NASDAQ 100 (QQQ) Technical Analysis And Trade Levels

The Invesco QQQ Trust (QQQ) has surged in the last two weeks. After bottoming out on August 5th at $424, it has rallied 12%. While impressive, the real test starts in the coming days.

From a technical analysis angle, the QQQ has moved into a perfect parallel line of resistance. This can be seen in the chart above. Major components of the NASDAQ 100 are also into major resistance. Nvidia (NVDA) has jumped 35% from recent lows and is now nearing a major resistance level (gap fill) at $126.35.

From a market psychology angle, investors went from panic to euphoria in two weeks. The VIX has dropped from 65 to 14. This shows complacency again and can be used as a contrarian indicator.

Overall, this level on the QQQ is a major test for bulls and bears. Should price continue higher, all-time highs become very likely. However, if the NASDAQ 100 stalls and starts dropping, by end of year, new lows are likely.