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Watching QQQ Futures, Daily Chart Divergence
Been charting $QQQ futures and noticing some potential bearish divergence on the daily RSI against price action over the past few weeks. Price has continued to push higher, but the RSI has made lower highs. It's not confirmed until we see a break of a key support level on the price chart, perhaps around the 700 handle. If we get a sustained move below that, it could signal a decent retracement. Conversely, a strong move back above the recent highs would invalidate the divergence hypothesis for now, making me re-evaluate the setup entirely. Just a heads up for anyone else following index futures.
3 comments · 12 points
I'm not so sure. RSI can lag, and often these divergences resolve with price continuing its trend after a brief consolidation. I'd want to see more than just RSI to call for a retracement.
Good catch. The 700 level is definitely key; a break there would confirm a lot of what the RSI is indicating.