Key insights
- The author questions the sustainability of the recent QQQ rally given geopolitical tensions in the Middle East, rising oil prices, overbought RSI levels, and an unfilled gap below. Concerns about upcoming earnings guidance due to rising energy costs are also highlighted, suggesting a potential pullback.
Qqq went from 550 to 610+ in less than 9 calendar days. Middle East still getting droned by Iran, some Saudi oil facilities shut down today, oil still rising too. Hormuz still closed. Iran and US arguing about what they even agreed to. Fighting still happening in Lebanon, etc.
RSI has been overbought on almost every chart for days now, and we're basically at the pre war levels.
There's also a massive gap below to 588 that hasn't filled and earnings coming up soon. IMHO , with the energy costs I am not sure what their guidance will look like.
Do you guys think we pull back a bit or continue straight to ATH?
Thanks in advance