All Eyes on $QQQ today as the Nasdaq100 is the first of the major averages to retest it’s 200-Day Moving Average. In early August, all of widely followed indexes broke below their 200-Day’s and have been stuck below there ever since. For a stock or Index to be in a well defined uptrend, I want to see it trading above an upward sloping 200-Day Moving Average.
While the S&P500 ($SPX), Dow Jones Industrial Average ($DJIA), Russell2000 $RUT), NYSE Composite ($NYA) and Dow Jones Transportation averages ($TRAN) are all still well below their 200-Day’s, the Nasdaq100 is the first to attempt to recover it.
It’s almost like the rest of the Market Indexes are now watching how successful this attempt becomes as the others are likely to follow the leader. We also want to keep an eye on what the Semiconductors are doing ($SMH) as they typically lead the Nasdaq higher, or warn of weakness to come. After breaking below key support levels in August, the $32 level should turn into some resistance going forward.
I can’t see a situation where the Nasdaq100 going on to make new highs into the $60s without participation out of the Semi’s. They both have some work to do.