Watching this symmetric wave pattern forming on QQQ. We're effectively at support now in this 2022 channel. If we bounce here and trust the pattern, we could see a high of $290 on ~23 January, 2023.
This could logically follow a Santa Rally and would be a similar start to 2023 as we had to 2022. Reasons for possible Santa Rally:
History says Santa Rally's are real
U.S. Midterm Election clarity (historically market is positive following)
Fed talks again on 12/13, and by then we might see signs of slowing the 75 bps rate hikes
Let's see if we get another wave of this pattern
This is a relatively short-term view. In the long-term, we have this upward trend line from the last 15 years that we're also touching support of. First real support if we break this trend is the pre-COVID high (10% down from here). If FAANG failing causes us to dip below that, well, that's for another post...
This could logically follow a Santa Rally and would be a similar start to 2023 as we had to 2022. Reasons for possible Santa Rally:
History says Santa Rally's are real
U.S. Midterm Election clarity (historically market is positive following)
Fed talks again on 12/13, and by then we might see signs of slowing the 75 bps rate hikes
Let's see if we get another wave of this pattern
This is a relatively short-term view. In the long-term, we have this upward trend line from the last 15 years that we're also touching support of. First real support if we break this trend is the pre-COVID high (10% down from here). If FAANG failing causes us to dip below that, well, that's for another post...