QID QQQ (Tech) Inverse ETF Daily Chart Falling Wedge Oversold Positive Divergence

QID is an inverse ETF against the Q's which are technology for the most part. RSI, stochastics and money flow are all oversold with no where to go but up. The blue falling wedge points to the launch pad for price. The green lines show strong positive divergence that wants to launch price now which means tech will weaken, which is very negative for broad markets.

However, it is not all rosie for tech bears, QID price needs to launch now but note how the money flow shows a lower low. Price will probably want to come back down to test these levels or slightly lower again to satisfy the money flow. The weekly chart is agreeable to a bounce with positive divegence but in the shorter term one month time frame the momo is down and it is agreeable to a pull back after a bounce occurs as well. Thus, the projection is for a zig zag move off these current levels.

Note the large buying a few days ago, where those traders are now a hair underwater. The bounce may target the doji candle and gap at 36; the 20-day MA is also sloping down to form a confluence at this area. Then perhaps the pull back and then she should have a more extended move higher in the weeks ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.