The stock market is raging higher Tuesday with the DOW currently trading 465 points up from yesterdays close. The rally comes after some of the largest U.S. companies posted strong than expected earnings which has helped the markets recoup some of their loses from last weeks bashing. The Nasdaq is leading major indices with 2.5% in gains so far today following one of the worst selloffs since April.
As you can see in the daily chart above, the $QQQ is trading sharply higher after selling off over 10% the past couple weeks. Notice how prices have respected the 200 day moving average (yellow line) on recent selloffs as it tends to act as a major level of support.
Something to keep in mind is we have Netflix ($NFLX) earnings after the close which is a top 10 holding in the $QQQs and will have a big impact on prices tomorrow. Netflix came up short on their last earnings so investors will have a close eye on subscriber growth for the past quarter.