With today’s weakness in QQQ most investors will be blaming it on Apple’s selloff, but should they be concerned with the weakness in QQEW?
PowerShares QQQ Trust (QQQ)
We can see QQQ today pulled back to the widely-watched 50DMA.
A key area that both institutions and investors might be looking to ‘buy the dip’. AAPL has a 19.14% weigthing in QQQ.
While most investors like to watch QQQ, we like to look at the equal weighted index QQEW for a different view.
First Trust NASDAQ-100 Equal Weighted Index (QQEW)
QQEW has been trading below its 50DMA since last week. This is telling us there is broad weakness in the Nasdaq-100 components.
You should be aware of this ‘equal weighted weakness’ because if investors start to jump the Nasdaq-100 ship they will be dumping all the NDX-100 names.