Conclusion, Investment Implications, Strategy

Chart 1 below shows that the daily total net assets (AUM) invested in the Invesco QQQ ETF, which tracks the market-leading NASDAQ 100 (NDX), are testing their 21-day moving average.  These assets’ rise above their 21-day moving average on May 3rd, indicating monthly expansion, fueled the 16% rise in NDX since then.

This represents a Tactical decision point for Large Cap Technology, which has been primarily responsible for the AI-led US broad market rally since January.  How these assets respond over the next several days to their 21-day MA will be seen as a coincident, if not leading, indication of whether NDX rebounds and continues higher, as it did on Jun 4th and Jun 24th, or continues lower to begin a corrective decline. 

Chart 1