QQQ will fall by 50% from its high point?
Columnist Rob Isbitts stated that if the AI transaction continues to experience losses, Invesco QQQ Trust could fall by up to 40% from its current level.
On Wednesday morning, QQQ traded near $675, which is a decrease of about 12% from its historical high. Isbitts identified two key downward areas on the weekly chart.
He stated that if it falls below the current support level, the fund could drop to the range of $540 to $550, with a decline of about 20%. He mentioned that this trend could happen quite quickly, as the previous upward movements that crossed this range did not leave much support behind.
He also stated that a deeper round of decline could reach $390 to $400, close to the level where QQQ initiated this upward trend 19 months ago, and also nearly 50% lower than its peak in 2026.
He said that a 40% decline is not his baseline forecast, but if investors conclude that spending on AI will not yield returns, that would represent a real risk.
He also stated that the results of the mid-term elections have raised doubts in the market about whether the government will continue to support data centers, which may further increase the pressure.
