QQQ & SP 500 Set Up For A Strong Potential Move

Stock market action has improved greatly over the last week, and it looks like the S&P 500 and QQQ are headed for much higher prices. Since October 2025, the market has mostly been choppy. Yes, we did have a strong vertical move over a 7–8 week period in April and May, but overall conditions have been frustrating and choppy for the past 11 months or so.

While the indexes held close to new highs, beneath the surface, many stocks struggled, as we can see from the low number of stocks above their 200-day moving average. The same can be said for the percentage of stocks above their 50-day moving average. It’s almost like there was a stealth bear market beneath the surface.

Very Few Stocks Above Their 50-Day Moving Average

Now, conditions are starting to improve. We are seeing strong stock action in crypto, software, and semiconductors. Some of the names I think can be key leaders are PLTR, CRWD, NET, IBIT, ETHA, ARM, AMD, MRVL, SPCX, and MU.

If you are coming from cash, be sure to practice Minervini-style progressive exposure. Keep your risk in check and build exposure only on the heels of success.

Current conditions on the QQQ somewhat remind me of 1999, when there was a similar period of chop. In addition, the latter portion of the midterm year and the pre-election year are usually the best periods of the four-year presidential cycle. All of this leads to a bullish outlook for the coming months.

Time will tell if this comes true, but as always, the key is to bend with the market and put risk management first.

Risk right. Sit tight.

Full disclosure: I currently own many of the names mentioned in this post.

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