The Nasdaq 100 QQQ opened higher hitting a key double top on the daily chart. The highs hit stretch back to late 2015. The QQQ has run from $101.75 to $115.40 in a month. That is a move of 13.4% on an index. One of the biggest moves historically in such a short time frame. I think it is worth mentioning as well that the QQQ hit this double top today on the back of Facebook, Alphabet and Amazon earnings. Basically, full fledged euphoria.

The technical way to trade this is to short the market and it makes perfect sense. While average investors are going to be too fearful of shorting the QQQ, smart money recognizes the double top and understands that markets top on euphoria. 

Ask yourself this; after so much good news in tech, what is the next catalyst to drive it higher? I think it is also worth nothing that Facebook gave up all its gains and Amazon is doing much the same. Alphabet seems to be the only one holding most of its early gains. Also worth noting, the QQQ has turned negative on the day. If you are making  the bull case for the markets, this should not be happening with such good earnings from Amazon and Alphabet.

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Jenny Rebekka