Stage 4 downtrend. Price is riding the 9 EMA lower.
But if this is only the first leg down, a bounce from here could be violent. Possibly enough to tag the 21 EMA.
Every single day $QQQ dropped 6% or more since its March 1999 inception, 30 total including today, and what happened at the next session's close:
𝟸𝟶𝟶𝟶-𝟶𝟷-𝟶𝟺: −𝟼.𝟾𝟼%, Next day: −𝟸.𝟻𝟻%
𝟸𝟶𝟶𝟶-𝟶𝟷-𝟶𝟼: −𝟼.𝟾𝟽%, Next day: +𝟷𝟸.𝟹𝟽%
𝟸𝟶𝟶𝟶-𝟶𝟺-𝟷𝟶: −𝟼.𝟷𝟶%, Next day: −𝟸.𝟹𝟽%
𝟸𝟶𝟶𝟶-𝟶𝟺-𝟷𝟺: −𝟾.𝟼𝟼%, Next day: +𝟷𝟷.𝟻𝟷%
𝟸𝟶𝟶𝟶-𝟶𝟻-𝟷𝟶: −𝟽.𝟸𝟽%, Next day: +𝟼.𝟷𝟷%
𝟸𝟶𝟶𝟶-𝟶𝟻-𝟸𝟹: −𝟾.𝟹𝟻%, Next day: +𝟼.𝟸𝟽%
𝟸𝟶𝟶𝟶-𝟶𝟿-𝟸𝟷: −𝟽.𝟸𝟽%, Next day: +𝟻.𝟿𝟷%
𝟸𝟶𝟶𝟶-𝟷𝟷-𝟶𝟾: −𝟽.𝟾𝟸%, Next day: −𝟶.𝟶𝟸%
𝟸𝟶𝟶𝟶-𝟷𝟸-𝟷𝟿: −𝟽.𝟼𝟸%, Next day: −𝟻.𝟽𝟹%
𝟸𝟶𝟶𝟷-𝟶𝟷-𝟶𝟸: −𝟾.𝟺𝟼%, Next day: +𝟷𝟼.𝟾𝟺%
𝟸𝟶𝟶𝟷-𝟶𝟷-𝟶𝟻: −𝟽.𝟼𝟻%, Next day: +𝟷.𝟷𝟶%
𝟸𝟶𝟶𝟷-𝟶𝟸-𝟸𝟽: −𝟼.𝟶𝟺%, Next day: −𝟹.𝟷𝟼%
𝟸𝟶𝟶𝟷-𝟶𝟹-𝟶𝟿: −𝟽.𝟶𝟷%, Next day: −𝟼.𝟸𝟷%
𝟸𝟶𝟶𝟷-𝟶𝟹-𝟷𝟸: −𝟼.𝟸𝟷%, Next day: +𝟻.𝟶𝟾%
𝟸𝟶𝟶𝟷-𝟶𝟹-𝟸𝟶: −𝟼.𝟽𝟹%, Next day: 𝟶.𝟶𝟶%
𝟸𝟶𝟶𝟷-𝟶𝟹-𝟸𝟾: −𝟾.𝟸𝟷%, Next day: −𝟷.𝟾𝟿%
𝟸𝟶𝟶𝟷-𝟶𝟺-𝟶𝟹: −𝟽.𝟹𝟹%, Next day: −𝟷.𝟽𝟼%
𝟸𝟶𝟶𝟷-𝟶𝟺-𝟸𝟹: −𝟼.𝟽𝟷%, Next day: −𝟷.𝟾𝟾%
𝟸𝟶𝟶𝟷-𝟶𝟿-𝟷𝟽: −𝟾.𝟻𝟶%, Next day: −𝟸.𝟸𝟺%
𝟸𝟶𝟶𝟷-𝟷𝟶-𝟷𝟽: −𝟽.𝟷𝟾%, Next day: +𝟸.𝟽𝟷%
𝟸𝟶𝟶𝟾-𝟶𝟿-𝟸𝟿: −𝟽.𝟿𝟺%, Next day: +𝟸.𝟾𝟾%
𝟸𝟶𝟶𝟾-𝟷𝟶-𝟶𝟽: −𝟼.𝟹𝟺%, Next day: −𝟶.𝟾𝟶%
𝟸𝟶𝟶𝟾-𝟷𝟶-𝟷𝟻: −𝟾.𝟿𝟼%, Next day: +𝟻.𝟺𝟸%
𝟸𝟶𝟶𝟾-𝟷𝟸-𝟶𝟷: −𝟽.𝟻𝟸%, Next day: +𝟹.𝟹𝟺%
𝟸𝟶𝟷𝟷-𝟶𝟾-𝟶𝟾: −𝟼.𝟶𝟸%, Next day: +𝟺.𝟾𝟸%
𝟸𝟶𝟸𝟶-𝟶𝟹-𝟶𝟿: −𝟼.𝟿𝟻%, Next day: +𝟻.𝟺𝟻%
𝟸𝟶𝟸𝟶-𝟶𝟹-𝟷𝟸: −𝟿.𝟷𝟽%, Next day: +𝟾.𝟺𝟽%
𝟸𝟶𝟸𝟶-𝟶𝟹-𝟷𝟼: −𝟷𝟷.𝟿𝟾%, Next day: +𝟽.𝟻𝟾%
𝟸𝟶𝟸𝟻-𝟶𝟺-𝟶𝟺: −𝟼.𝟸𝟷%, Next day: +𝟶.𝟸𝟺%
𝟸𝟶𝟸𝟼-𝟷𝟷-𝟶𝟻: −𝟼.𝟺𝟿%, Next day: ???
Summary across all 29 prior instances:
- Full history, 1999 to 2025: 17 green, 1 flat, 11 red. Avg +2.67%, median +2.71%.
- Post-2008, 9 instances: 8/9 green, 89%. Avg +4.16%, median +4.82%.
- Since 2010, 5 instances: 5/5 green, 100%.
@FranVezz So true. Many pros live by this rule. You might miss out on a few overnight runners, but saving your capital and smoothing the equity curve is well worth the trade off.