Chart of the Day - Friday, September 4th, 2020

Today’s Chart of the Day was shared on Twitter by Alan Cohen (@al_xdpg). It's a daily candlestick chart of the Nasdaq 100 ETF, $QQQ, year-to-date. $QQQ closed lower by 1.33%  today, after dropping more than 5% yesterday. Despite the continued weakness, Alan explains that today's price action was actually quite bullish. The index fell this morning, but quickly found buyers at a confluence of support from the 50-day moving average and the uptrend line. Alan adds that momentum, as measured by RSI, remains in a bullish range above 50. Lastly, price closed above the 21-day moving average, which has been an important moving average for most of the rally off of the March lows. At one point today, $QQQ was more than 10% below Wednesday's all-time highs. These corrections are necessary and healthy, as they help to reset sentiment and shake out the weak hands. After a couple of turbulent sessions, bulls can rest easy over the long weekend, knowing that the uptrend remains intact.