QQQ Bulls and Bears Battle For Control at Key Trendline

On July 24, I published an article about NASDAQ's special rebalancing. In this article I discussed that NASDAQ has significantly outperformed the stock market, and that the objective of the special rebalancing is to slow down NASDAQ's gains, which is bad news for NASDAQ investors.

Key White Trendline

• There has been a significant white trendline for NASDAQ's price action that dates back to Nov. 2022.
  
• This white trendline was initially acting as a resistance level (marked by red arrows), but has flipped to a support level in June (marked by green arrows).
  
• The NASDAQ special rebalancing occurred in July, which was the peak of this multimonth NASDAQ rally.
  
• Since the special rebalancing NASDAQ has dropped below the white trendline, and today NASDAQ bulls and bears are trying to fight for control at this white trendline (marked by the white circle). Bears want the trendline to act as resistance, and bulls want to push the price above the white trendline to make it support.
  

Key Long Term Price Target

• The key longer term price target is QQQ's all-time high, which coincides with a resistance zone between $398.89 and $405.53.