DailyBubble News
DailyBubble News

QQQ is overbought according to the RSI indicator

According to BTIG, the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) is showing signs of being overbought. With $290.99B in assets under management, the ETF has been trading well into overbought conditions based on the Relative Strength Index indicator. As of Thursday morning, the RSI on QQQ is at 81.59, surpassing the traditional overbought level of 70. This is due to the fund’s 7.8% rally since the end of May.

BTIG pointed out that the last time QQQ closed with a daily RSI above 80 was on 9/2/20, following a significant gain. Additionally, the ETF’s three largest holdings – Nvidia, Microsoft, and Apple – are also in overbought territory according to the RSI indicator. Nvidia’s RSI is around 81.37, Microsoft’s is at 70.02, and Apple’s is 73.56.

Year-to-date, QQQ has seen a price increase of 18.5%, while Nvidia has surged by 173.7%, Microsoft by 18.7%, and Apple by 11.3%. These numbers indicate a strong performance for these stocks and the ETF, but investors should be cautious about the potential for a pullback in the near future.

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