This Nasdaq 'Death Cross' Is a Bad Omen

The pain continues for tech stocks... The tech-heavy Nasdaq 100 Index has already lost roughly 33% this year. And of course, tech leaders like Meta Platforms (META) and Amazon (AMZN) are down much more. [Chaikin PowerFeed]( This Nasdaq 'Death Cross' Is a Bad Omen By Pete Carmasino, chief market strategist, Chaikin Analytics The pain continues for tech stocks... The tech-heavy Nasdaq 100 Index has already lost roughly 34% this year. And of course, tech leaders like Meta Platforms (META) and Amazon (AMZN) are down much more. But that doesn't mean the worst is over for these stocks... You see, after the COVID-19 panic in 2020, an influx of stimulus money mixed with low interest rates served as rocket fuel for tech stocks. Investors threw risk out the window. That carefree attitude led to an incredible run higher for tech stocks... The Invesco QQQ Trust (QQQ) – which tracks the Nasdaq 100 Index – peaked at more than $400 per share in late 2021. That was about 135% higher than its COVID-19 bottom. But that was what I call a "false" high. It only happened due to all the stimulus money. And even worse, tech stocks could still fall a lot further in the days and weeks ahead. As I'll explain today, a critical signal could trigger as soon as this week. And it tells us that QQQ could plunge all the way down to $185 per share. That would be another 30% drop. It sounds like a doomsday scenario. But it's easy to see on the chart... Recommended Links: [Nov. 15: Wall Street legend warns BANK RUN is coming]( That morning at 10 a.m. ET, an announcement could cause thousands of people to move their U.S. dollars OUT of cash and OUT of popular stocks. And INTO a rare new vehicle that could have doubled your money 63 different times after the 2020 crash. [We're posting the full details here](. ['A Gold Surge Is Coming']( Some of the richest men in the world are jumping in right now... because evidence suggests we could see MUCH HIGHER gold prices before the end of this year. But if you're not taking advantage of a little-known way to invest for less than $10, you're missing out. [Click here for full details](. The chart below is a ratio chart. It's the weekly look at QQQ divided by the SPDR S&P 500 Trust (SPY). And right now, it's drawing a bleak picture for investors in tech stocks... You see, this ratio is about to experience a "death cross" on a weekly basis. Take a look... [Chaikin PowerFeed] A so-called "death cross" typically occurs when an asset or ratio's 50-day moving average moves below its 200-day moving average. Since we're using a weekly chart in this case, we're instead referring to the 50-week and 200-week moving averages. It's essentially the same thing. We're just using a different time period. In the chart above, the black line is the ratio, the red line is the 50-week moving average, and the blue line is the 200-week moving average. A death cross could happen any day. Folks, that's terrible news... It means that the long-term trend for the QQQ (and tech stocks, in general) is turning lower. And as I noted earlier, that means things could soon get a lot worse for tech stocks... On the long-term chart of QQQ, the next line of support is at $185 per share. Today, QQQ trades for about $263 per share. So it could fall another 30% before hitting support. And don't forget all the outside factors in play these days... The stimulus is reversing. Economic slowdown is on the horizon. And even higher interest rates are still on the table. Those factors all combine to create massive headwinds for tech stocks. That means the worst-case scenario for these stocks isn't as farfetched as it might seem. There is one silver lining, though... If QQQ does hit that low, it will be a generational buying opportunity. At some point, we'll be able to buy into tech stocks at bargain prices. And we'll be able to hold them for years. So for now, stay patient. Remember that tech stocks still have a lot of steam to blow off. Good investing, Pete Carmasino Editor's note: If you think what's happening now is bad, watch out for 2023... Chaikin Analytics founder Marc Chaikin believes a financial reset could cause a run on the banks unlike anything in U.S. history. But few people realize it – or what it could do to your wealth... That's why Marc is hosting a special online briefing next Tuesday, November 15. He'll detail why it's critical to move your money out of cash and popular stocks and into a new vehicle 50 years in the making. The broadcast will begin promptly at 10 a.m. Eastern time. It's free to attend. And just for showing up, you'll get a free recommendation from Marc. [Reserve your spot right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.92% 8 18 4 S&P 500 -2.06% 123 262 109 Nasdaq -2.31% 24 54 22 Small Caps -2.73% 496 928 456 Bonds +0.33% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bullish. Major indexes are mixed. * * * * Top Movers Gainers [rating] AKAM +6.19% [rating] BIO +5.67% [rating] META +5.18% [rating] DHI +2.98% [rating] XRAY +2.35% Losers [rating] DIS -13.16% [rating] OXY -9.22% [rating] NCLH -8.62% [rating] CTRA -8.20% [rating] BBWI -7.93% * * * * Earnings Report Reporting Today Rating Before Open After Close BDX, RL, WRK TDG, TPR No earnings reporting today. Earnings Surprises [rating] RBLX Roblox Corporation Q3 $-0.50 Missed by $-0.13 [rating] TTD The Trade Desk, Inc. Q3 $0.26 Beat by $0.03 [rating] DHI D.R. Horton, Inc. Q4 $4.67 Missed by $-0.46 [rating] STE STERIS plc Q2 $1.99 Beat by $0.01 [rating] CELH Celsius Holdings, Inc. Q3 $-2.46 Missed by $-2.56 * * * * Sector Tracker Sector movement over the last 5 days Materials +5.16% Industrials +3.22% Staples +0.93% Real Estate +0.81% Health Care +0.67% Financial +0.59% Energy -0.14% Utilities -0.96% Information Technology -1.19% Communication -1.27% Discretionary -3.75% * * * * Industry Focus Telecom Services 6 22 15 Over the past 6 months, the Telecom subsector (XTL) has outperformed the S&P 500 by +7.62%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #14 of 21 subsectors and has moved down 3 slots over the past week. Indicative Stocks [rating] CNSL Consolidated Communi [rating] CCOI Cogent Communication [rating] ATEX Anterix Inc. * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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