QQQ recently slipped below its 50-day moving average, but the fund remains more than 5% above the important 200-day moving average.
“he shares are still boasting a 23.7% year-over-year lead, and are testing a foothold near their 80-day moving average — a familiar layer of support that contained several pullbacks in 2017. As such, today’s activity in QQQ’s options pits could be indicative of a long tech trader initiating a hedge against any additional downside risk,” according to Schaeffer’s.
Investors have added $719.3 million to QQQ over the past month, good for the highest total among all PowerShares ETFs over that period.
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Tom Lydon’s clients own shares of QQQ, Apple, Facebook and Microsoft.