It looks like the selloff in the technology sector will continue. The Invesco QQQ Trust ETF (NASDAQ:QQQ) is gapping lower. The bears seem to be firmly in control.
If QQQ reach the important $320 level, there’s a good chance it rebounds. There was support at this level in February and March.
Sometimes, support levels can stay intact for a long time, and that could happen here.
Support is a large group of investors who are looking to buy shares at, or close to, the same price. In this case, it’s $320.
At support levels, there is more demand for a stock than there is supply of the shares. This is why downtrends end when they reach them.
And sometimes stocks rally off of support levels. It happened before with QQQ. It may happen again.
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