From Nvidia To Netflix, QQQ Is On Fire - But Will It Burn Out?

The Invesco QQQ Trust QQQ has been on a tear, rallying 20.53% over the past month and pushing into its most overbought zone since last July.

Powering this surge are tech juggernauts like Nvidia Corp NVDA, which soared nearly 40%, and Netflix Inc NFLX, up over 20% in the same period.

With investor enthusiasm running hot, QQQ now trades at $520.20, reflecting both momentum and mania.

All Signals Point To Bullish

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Technically, the trend remains strongly bullish. QQQ trades above its five, 20, and 50-day exponential moving averages, while its eight-day simple moving average (SMA) of $514.13, 20-day SMA of $492.02, and 50-day SMA of $474.66 all flash bullish signals.

Even the longer-term 200-day SMA sits well below at $493.11, underscoring the ETF’s sharp upward break. The Moving Average Convergence Divergence (MACD) reading of 14.66 and a Relative Strength Index (RSI) of 70.17 confirm that QQQ is in overbought territory.

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XLK Joins The Tech Euphoria

The Technology Select Sector SPDR Fund XLK isn't sitting quietly either – it's gained 24.84% in the last month. Microchip Technology Inc MCHP has exploded +54.07%, while Seagate Technology Holdings PLC STX, Micron Technology Inc MU and Palantir Technologies Inc PLTR have each gained over +39%, as chipmakers and AI stocks dominate the leaderboard.

Caution: Euphoria Zone Ahead

While bulls are firmly in control, QQQ's RSI suggests we may be entering euphoria territory, where rallies can exhaust themselves.

With many of the big names already logging massive gains, investors now face the classic question: Is this the breakout before a breather, or the setup for a sharper reversal?

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