《⚠️ QQQ Is Up Premarket, but I Still See It as a Relief Bounce—the Volume Hasn’t Caught Up》
U.S. stocks are up sharply in premarket trading, but I still see this move as a relief bounce, not a genuine major rally. QQQ’s volume still suggests to me that demand is insufficient.
📊 Price is rising, but volume hasn’t followed
Yesterday, the Nasdaq, S&P 500, and QQQ opened lower on lighter volume and then climbed, with QQQ’s volume especially subdued. During the strong rally two days ago, volume didn’t expand significantly either. Yesterday’s action confirmed my view that demand is insufficient.
📍 First, watch the gap and resistance above
The major resistance level is where heavy-volume selling occurred on November 5. QQQ is currently right near the gap between November 5 and 6. If this is just a relief bounce to fill the gap, watch closely after the U.S. market opens tonight to see whether a high-volume hourly bearish candle appears.
🔎 Keep another possibility in mind
If no high-volume bearish candle appears and the daily chart continues to rise on declining volume, then QQQ has another gap above near 711. We’ll see whether it gets filled.
I’m sticking with my relief-bounce assessment and bearish bias, but we need to distinguish between two scenarios: a high-volume bearish candle appearing, or the daily chart continuing to rise on declining volume.
💬 In this rally, is the first thing you want to see volume catch up?
If this recap was helpful, give it a like and share it with friends who follow U.S. stocks. You can also save it to check these conditions later.
#QQQ
X: print_kbar
U.S. stocks are up sharply in premarket trading, but I still see this move as a relief bounce, not a genuine major rally. QQQ’s volume still suggests to me that demand is insufficient.
📊 Price is rising, but volume hasn’t followed
Yesterday, the Nasdaq, S&P 500, and QQQ opened lower on lighter volume and then climbed, with QQQ’s volume especially subdued. During the strong rally two days ago, volume didn’t expand significantly either. Yesterday’s action confirmed my view that demand is insufficient.
📍 First, watch the gap and resistance above
The major resistance level is where heavy-volume selling occurred on November 5. QQQ is currently right near the gap between November 5 and 6. If this is just a relief bounce to fill the gap, watch closely after the U.S. market opens tonight to see whether a high-volume hourly bearish candle appears.
🔎 Keep another possibility in mind
If no high-volume bearish candle appears and the daily chart continues to rise on declining volume, then QQQ has another gap above near 711. We’ll see whether it gets filled.
I’m sticking with my relief-bounce assessment and bearish bias, but we need to distinguish between two scenarios: a high-volume bearish candle appearing, or the daily chart continuing to rise on declining volume.
💬 In this rally, is the first thing you want to see volume catch up?
If this recap was helpful, give it a like and share it with friends who follow U.S. stocks. You can also save it to check these conditions later.
#QQQ
X: print_kbar
