Stock Chart: Bear Market View for Nasdaq-100 (QQQ) Weekly View

May 8, 2022, 8:35 pm EDT

Bear Market View for Nasdaq-100 (QQQ) Weekly View

As mentioned in our previous two articles for Nasdaq-100 (QQQ) technical analysis we quoted two levels of downside support: 300 and 166:

Since QQQ (309 now) is approaching our initial support of 300, there is a probability that QQQ may keep going lower toward its next level 166. It would be a severe drop for the Nasdaq-100 because it meant -25% down from the top 400 if Nasdaq indeed reachs 300. More importantly, the drop would be about -59% from 400.

We do not know whether or when QQQ will plunge to the 166 level. But, we do not want to rule out this case. In fact, we think that there is a chance QQQ could drop even lower than 166. We can imagine how chaotic actions the stock market would be when it happens. 

Some people are still optimistic that the pullback would be mild after Fed Chairman announced only 50 basis points on 05/04. So Dow Jones was up to 900+ points. However, the real actions of the institutional investors presented their fear by exiting the stock markets broadly on Thursday (05/05) and Friday (05/06). 

Technically, we can see QQQ already lost all major support in the nearby region. Penetrating down 300 would be the beginning of the disaster. In our opinion, it is the full-scale development of the bear market. Please be prepared.

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