$Invesco QQQ Trust-ETF(QQQ)$
However, as the fund approaches new highs, the interested investors (particularly those having position[Sly] ) may be wondering where the next support levels for QQQ will emerge, especially considering the dominance of just a handful of key stocks in the rally.
Currently, the 50-day moving average, which sits around $430, could serve as a dynamic support level in the event of a short-term correction.
Another key support level to monitor is the $420 level. This level has been view as another support level for QQQ (in past 2 months historically [LOL] ), and could provide a floor for the fund in the event of a more significant pullback. Additionally, the 100-day moving average, which currently sits around $410, could act as a strong support level if QQQ experiences a deeper correction.
In terms of the dominance of just a handful of key stocks in the rally, it's important for interested investors to remain vigilant and diversified in their approach. While mega-cap tech stocks like Apple, Amazon, Microsoft, and Meta have been driving much of the gains in QQQ, it's important to remember that market conditions can change quickly.
From my point of view, interested investors should consider diversifying their portfolios across different sectors and asset classes to mitigate concentration risk. To be honest, I think it will be more fruitful by conducting thorough research and analysis on individual stocks within QQQ which can help identify opportunities for outperformance and reduce reliance on a handful of key stocks.
In a nutshell, while the QQQ ETF has enjoyed a strong rally in 2023, interested investors should remain cautious and vigilant of potential support levels in the event of a pullback. By monitoring key technical levels and remaining diversified in their approach, investors can navigate market uncertainties and position themselves for long-term success.
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