TQQQ Drops 6% as Nasdaq Rotation Triggers Leverage Unwind
$ProShares UltraPro QQQ(TQQQ)$
$111.08 (−6.12%): Nasdaq leverage unwind after mega-cap rotation; short-term support eyed near $110
Market Recap:
ProShares UltraPro QQQ (TQQQ) slumped −6.1% to $111.08 following broad Nasdaq weakness as traders rotated out of large-cap tech ahead of key macro prints.
The fund, which offers 3× daily exposure to the Nasdaq-100, extended its two-day decline to nearly −9% from last week’s highs around $118–$120. Despite the drop,
TQQQ remains up ~40% YTD, reflecting the year’s dominant AI-driven risk rally and aggressive beta exposure. Volume surged to 60.5M vs. its 55M average, confirming active deleveraging and short-term profit-taking in growth-heavy portfolios.
Technical Indicators Analysis:
MACD remains positive but is narrowing (MACD line 4.04 vs. signal 3.75) as histogram momentum fades; RSI(14) has eased to 53 from overbought readings near 70 last week, signaling a cooling but not yet broken uptrend.
Price is testing the rising 20-day EMA ($110.5) as immediate support, with the 50-day EMA ($103.6) providing deeper trend defense.
For the next week, expect volatility between $108–$116: holding above $110 preserves the medium-term bullish channel, while a breakdown below $108 could invite a pullback toward $103–$100.
Support: $107/$110
Resistance: $122
Valuation and Target Range:
Although TQQQ itself has no intrinsic P/E (being a leveraged ETF), its performance mirrors the Nasdaq-100’s valuation framework — roughly 34× forward earnings versus the S&P 500’s ~28× average.
The index’s elevated multiple remains justified by high-growth earnings, yet leaves little margin for policy or inflation surprises.
Short-term traders may find asymmetry attractive near $108–$110 if volatility stabilizes, while risk-aware investors should note the amplified drawdown risk inherent to 3× leverage.
Risk Statement:
Leveraged ETFs magnify both gains and losses and are not suitable for long-term holding without active risk control. This commentary is for technical reference only and does not constitute investment advice or a recommendation to buy or sell any security.
Data Source: Yahoo Finance & TradingView (daily chart, Nov 4 2025). Prepared by Tiger Morning Brief | All data as of Nov 4 2025 | For internal use only.
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