The NASDAQ 100 (QQQ) has seen massive buy
interest in the last three trading days. The two areas seeing the
most money flow are biotechnology and key stocks like Apple (AAPL),
Facebook (FB), Netflix (NFLX). Basically the FANG names. As a pro,
my eye jumps right to the high on the QQQ $146.00 previous high
made on July 27th. When this high was made, we saw a massive
reversal. Today, we have tested that high again. The big question
for any pro trader is, will we close the day above that high? Why
is that significant? On a technical basis it will erase that
bearish reversal day from July 27th. Should the NASDAQ 100 (QQQ)
close above that level, it becomes a bullish chart with likely
further upside. However, if the QQQ fails to close above it, the
bearish reversal from July 27th still has control. I hope this
explains how an expert analyzes a chart to determine a bullish or
bearish bias.
