The Invesco QQQ ETF (QQQ), which tracks the tech-heavy Nasdaq 100 index , is shedding 0.9% in afternoon trading toward a 7-week low, with just 26 of its 104 components gaining ground. The triple-Qs is on track for a third-straight close below its 50-day moving average (50-DMA), which many on Wall Street view as a guide to the intermediate-term trend. What may be more important to the triple-Qs' outlook is that the 50-DMA is also headed for a decline Monday, which would be the first since May 5. Some chart watchers believe falling below the 50-DMA, and particularly when the 50-DMA is sloping lower (Apple Inc.'s stock (AAPL) is below its 50-DMA, but that average is still ticking higher; Microsoft Corp. shares are heading for the (MSFT) for the 10th close below the 50-DMA, which has been declining since Sept. 11; and Amazon.com Inc.'s stock (AMZN) is headed for the 7th-straight close below the 50-DMA, which has been declining for three days. Meanwhile, the S&P 500 is falling 2.1% and headed for the 2nd-straight sub-50-DMA close, while the average is still ticking higher.), marks a change in pattern to neutral, if not bearish. The triple-Qs are down 10.3% so far this month, putting them in danger of the biggest monthly decline since November 2008. Among the triple-Qs' more heavily weighted components,
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 21, 2020 13:21 ET (17:21 GMT)
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