QQQE Flooded with Sellers
RSI Comparison: The Direxion NASDAQ 100 Equal Weighted Index Shares (QQQE) has an RSI reading of 29.7, indicating potential exhaustion of recent selling, compared to the S&P 500's RSI of 37.0.
Investment Opportunity: Bullish investors may view the low RSI as a signal to seek buying opportunities in QQQE.
52-Week Performance: QQQE's 52-week range is between $75.07 and $105.37, with the last trade recorded at $96.91, reflecting a 2.1% decline for the day.
Author's Opinion Disclaimer: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
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Analyst Views on QQQE

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RSI Comparison: The Direxion NASDAQ 100 Equal Weighted Index Shares (QQQE) has an RSI reading of 29.7, indicating potential exhaustion of recent selling, compared to the S&P 500's RSI of 37.0.
Investment Opportunity: Bullish investors may view the low RSI as a signal to seek buying opportunities in QQQE.
52-Week Performance: QQQE's 52-week range is between $75.07 and $105.37, with the last trade recorded at $96.91, reflecting a 2.1% decline for the day.
Author's Opinion Disclaimer: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Market Reaction to AI Stocks: Despite a recent decline in tech stocks, experts advise long-term AI investors to remain calm and not panic-sell, viewing the drop as routine profit-taking rather than a sign of trouble for the sector.
Impact on ETFs: ETFs heavily invested in major AI companies, such as NVIDIA and Microsoft, have seen significant declines, with some losing over 6% in just five days, highlighting the risks associated with concentrated investments in AI.
Opportunities in Software and Cybersecurity: Analysts suggest that the current pullback presents opportunities in overlooked sectors like software and cybersecurity, recommending ETFs that focus on these areas as potentially safer investments.
Earnings Strength and Future Outlook: Despite market fluctuations, earnings remain strong, with a high percentage of companies exceeding expectations; upcoming earnings from NVIDIA are seen as a critical factor that could influence market stability.
Market Trends: Despite a significant outflow of $10.44 billion from U.S. equity funds, technology-themed ETFs experienced a net inflow of $3.42 billion, marking their third consecutive week of gains.
Key Funds: The Technology Select Sector SPDR Fund (XLK) and Invesco QQQ Trust (QQQ) are leading the charge in tech investments, with XLK up 18% this year and QQQ favored for its focus on large-cap growth stocks in AI and semiconductors.
Sector-Specific Interest: Investors are increasingly drawn to semiconductor-focused funds like iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH), which have seen price gains of 25% this year, reflecting strong interest in AI-related technologies.
Valuation Concerns: While technology funds attract investment, broader market ETFs like SPDR S&P 500 ETF (SPY) are experiencing outflows, indicating a divergence in investor sentiment amid concerns over high valuations in the S&P 500.
Nasdaq 100 ETFs Performance: Despite the U.S. imposing significant tariffs, Nasdaq 100 ETFs like QQQ and QQQM have reached record highs, driven by investor confidence in major tech stocks and AI-related innovations, with QQQ outperforming the S&P 500 over the past six months.
Factors Supporting Growth: Key drivers for this rally include exemptions for semiconductor companies from tariffs, Apple's substantial domestic investment, increased capital expenditure in AI infrastructure by major tech firms, and expectations of a potential Federal Reserve rate cut, all contributing to a favorable environment for growth stocks.
Market Outlook for 2025: Matthew Bartolini discusses a positive market outlook for the second half of 2025, driven by strong economic fundamentals, pro-growth policies, and favorable conditions for risk assets, despite existing uncertainties.
Investment Strategies: Recommendations include building equity portfolios focused on high-quality companies, increasing global diversification, and considering alternatives like gold ETFs, as traditional bonds may no longer provide adequate diversification.
QQQ Performance: The Invesco QQQ Trust, which tracks the Nasdaq 100 index, has gained nearly 10% in May, driven by strong earnings from Nvidia and a resurgence in Tesla's stock, marking its best monthly performance since 2023.
Impact of Nvidia and Tesla: Nvidia's impressive fiscal Q1 results and Tesla's renewed focus on AI and self-driving capabilities have significantly boosted investor confidence, contributing to the overall momentum of tech stocks within the ETF ecosystem.










