Rare air for the QQQ, trading 24% above its 200-day average. Stretched? Sure, but also consistent with a move coming off market lows. Not much endorsement from ETF flows either. pic.twitter.com/DEO7dqds9O
— Todd Sohn (@Todd_Sohn) June 20, 2023
Today’s Chart of the Day was shared by Todd Sohn (@Todd_Sohn). The mild ~2% pullback over the past two sessions should come as no surprise, given the relentless rally that preceded it. Todd points out that, on Thursday, the Nasdaq 100 ETF ($QQQ) was 24% above its 200-day moving average for the first time in more than two years. That’s in the 95th percentile of all historical readings. While it’s rare to see the Nasdaq stretch this far above its long-term average, Todd point’s out that it’s not necessarily a bad thing. If anything, this has coincided with bear market recoveries and strong uptrends. Less than a year ago, the Nasdaq was 20% below its 200-day moving average for the first time in over a decade.