The rally in the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) has stalled out. It may not make a decisive move until Apple Inc. (NASDAQ:AAPL) reports earnings after Thursday's close.
The QQQs have run into resistance around the $353.50 level. The resistance is there because of buyers’ remorse. In late September and early October, this level was support. A large number of investors bought it before it moved higher.
Now that QQQs have dropped back below this important level, many of these investors decide to sell. They don’t want to take a loss, so they place their sell orders at the same price level they bought at.
If there are enough of the sell orders, it will create resistance. This is the case here.
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