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QQQ RSI Just Hit 80+ — How Should You Prepare for the Next Few Weeks?

QQQ’s 14-day RSI has spiked above 80 this week as the Nasdaq-100 touched fresh all-time highs near 711.

Here’s what the historical data actually tells us for the next 1–4 weeks:

Historical Pattern (1999–2026)

  • Next 5–10 days: 60–70% chance of a mild pullback or consolidation (typically 3–7%)

  • Next 3–4 weeks: Strong bull markets usually recover and grind higher

  • Key takeaway: RSI >80 is not a sell signal in powerful secular uptrends, it’s often just momentum exhaustion before the next leg up.

2026 Context We’re in a very strong bull market (QQQ +13% YTD, +44% over the past year). This RSI spike looks almost identical to several 2024–2025 setups where short-term dips quickly became excellent buying opportunities.

My Base Case (65% probability) A healthy 4–7% pullback or consolidation over the next 10–15 trading days, followed by resumption of the uptrend.

Action Plan Right Now:

  • Tighten stops on existing longs

  • Consider taking 20–30% profits into strength

  • Watch the 20-day MA (~660–670 zone) as a high-probability re-entry area

Bottom line: Extreme RSI in a strong bull market is a caution light, not a red light. History shows the highest edge comes from buying the dip, not selling the top.

What’s your plan?

May 9
at
10:41 AM
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