Nasdaq Extremely Oversold

This is a side-by-side comparison of the Nasdaq daily chart from March 2009 with today (May 2022). The charts are looking very similar to one another. The heatmap on the daily chart has not been this cold since the bottom of the Great Recession. The daily plot is nearing a record low. While this daily chart cannot make long term predictions, it suggests that we are at a bottom right now and the Nasdaq is about to move back up for the coming weeks to months.

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On Friday, May 20th, SQQQ closed its weekly chart with its highest ever RSI. The price is also being very strongly resisted by the upper limits of the weekly EMA ribbon. This level of over extension to the upside is unsustainable and is highly suggestive that QQQ has bottomed or has nearly bottomed and is about to make a move higher that will last at least for several weeks, if not months.