Inverse Head and Shoulders in the QQQ

Inverse Head and Shoulders in the QQQ

by

Top stocks q2, stock picks q2, Pete Najarian stocks, najarian stocks, Najarian stock picks, Pete Najarian top stocks, Pete Najarian stock picks, stock market picks q2, best stocks q2, Top stocks q2, stock picks q2, Pete Najarian stocks, najarian stocks, Najarian stock picks, Pete Najarian top stocks, Pete Najarian stock picks, stock market picks q2, best stocks q2, Top stocks q2, stock picks q2, Pete Najarian stocks, najarian stocks, Najarian stock picks, Pete Najarian top stocks, Pete Najarian stock picks, stock market picks q2, best stocks q2, Top stocks q2, stock picks q2, Pete Najarian stocks, najarian stocks, Najarian stock picks, Pete Najarian top stocks, Pete Najarian stock picks, stock market picks q2, best stocks q2, Top stocks q2, stock picks q2, Pete Najarian stocks, najarian stocks, Najarian stock picks, Pete Najarian top stocks, Pete Najarian stock picks, stock market picks q2, best stocks q2,

The QQQ Nasdaq ETF has had a great first half of the year following its troublesome 2022 — and that rally may not yet be over. The QQQ is currently up more than 40% YTD, its best first half of the year in decades. However, the ETF still trades more than 9% below its November 2021 all time high of $408.71. 

Last week, the QQQ broke out of a short-term inverse head and shoulders pattern.

Let us show you how to find Unusual Options Activity

Everything you’ve ever wanted to know about Unusual Options Activity—in one convenient insider’s guide.

What is an Inverse Head and Shoulders Pattern

An inverse head and shoulders pattern is a technical analysis pattern commonly seen in the stock market. It typically signals a bullish reversal in the price trend of an asset. The pattern consists of three distinct parts: two lower lows on either side (the left and right shoulders) and a lower low in the middle (the head). 

The shoulders are generally at a similar price level, while the head is lower. The pattern is completed when the price breaks above the neckline, which connects the high points of the shoulders. This breakout often indicates a shift in market sentiment, suggesting that the asset’s price may rise in the future. Traders and investors use the inverse head and shoulders pattern to identify a potential buying opportunity.

Level Up Your Trading

Get a custom-designed trading program tailored to your individual needs, skill level, and schedule.

QQQ Inverse Head and Shoulders Spotted

In this instance, last week, the QQQ broke out of an inverse head and shoulders with strength and volume, indicating the potential for more upside ahead as we enter the second half of the year. 

While it wouldn’t be surprising to see tech stocks take a short breather after the massive rally we’ve seen, it’s worth noting that this correlates to history: July is typically a positive month for the stock market. Stocks ended higher during 9 of the past 10 July’s, with an average S&P 500 return of over 3%. With a Nasdaq that has been handily outperforming the S&P 500 this year, it’s believable that the Nasdaq could continue that outperformance.

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!
Start Your Day the Smart Money Way

Real-time Analysis

Interactive Chat Q&A
Professional Tactics