Why Nasdaq will have a huge drop

During the Covid-19 pandemic, the Nasdaq ETF (QQQ) has risen significantly because of technology companies benefiting from a stay at home economy. While technology stocks are up right now, they could be seeing a huge drop coming into 2021. One reason why this could happen is because Pfizer and Moderna already have vaccines ready. Once everybody gets the vaccine, not a lot of people will be staying at home and using technology. Another reason is because if you look at the QQQ chart on the bottom, it is way above it’s average trend.

Looking at this daily chart of QQQ it is 15% to 45% above it’s average trend. It has a negative MACD crossover and the RSI is showing a down signal. My evaluation for QQQ in 2021 is it will drop 15% or more.

DISCLAIMER

All of these evaluations/predictions of the market are solely my opinions and are not guarantees of what will happen in the future. Talk to your investment advisor when making decisions.