The Invesco QQQ Trust Series 1 ETF QQQ has been getting crushed. But if it keeps going lower, there’s a chance the selloff ends around the $320 level. It was support before and sometimes support levels can remain important and stay intact for a long time.
Support is a large group of buyers looking to pay at, or close to, the same price for new shares. In this case it’s $320.
Markets move lower because there isn’t enough demand, or buyers, to absorb all of the supply of shares the sellers have to offer. They are forced to push the price lower.
When a market reaches support, the dynamic changes. Investors can sell all they wish with no fear of the price going lower. There is enough demand to take it all in.
Sometimes markets rally after they reach support levels. This is what happened with QQQ the last time it fell to $320 and it may happen again.
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