QQQ is Still in a Negative Gamma Regime. Here’s How a ‘Put Wall’ and Fibonacci Support Could Come Into Play.

Invesco QQQ Shares (QQQ) remains in a negative gamma regime following a significant bearish decline in recent trading sessions. QQQ, which tracks the tech-heavy Nasdaq-100 Index, reached the 38.2% Fibonacci level in just one week. Amid this downward trend, Nvidia stock is facing uncertainty ahead of its earnings announcement this week.

Intel experienced a surge in unusual put and call option volume, with investors appearing bullish on the company despite its recent price drop. Currently, QQQ is flirting with the critical 50% level at 697.75, just below the psychologically significant 700 mark, which is identified as the largest put open interest strike, or "put wall."

This put wall could potentially serve as a strong level of support, both technically and psychologically. Other key indicators include the Relative Strength Index (RSI) indicating bearish momentum and QQQ opening today below its 50-day moving average, which sits around 713.24. Additionally, a Hindenburg Omen signal was recently flagged during The Barchart's Market on Close livestream.

John Rowland, Barchart's Senior Market Strategist, discussed these points with Twitter Tom in the latest episode. As of the publication date, Barchart Insights had no positions in the securities mentioned. All content provided herein is for informational purposes only.