TECHNICALS QQQQ

The NAZDAQ 100 Index (QQQQ), has been very strong of late but may be getting set for a pullback. The 2 day RSI is currently registering a 97 rating which is an extreme and usually signifies a sell or a short signal. I have no intention of shorting at this time, but if I see the market internals weaken I will be out of this ETF completely.

Where would I buy it back? The old resistance for the QQQQ was the 42 area and that may now be a good entry point. One note of caution and that is that next week is the beginning of the earnings season and all the good news may be priced into stocks.