The Invesco Nasdaq QQQ Trust (QQQ) has become a star in the stock market, outshining the S&P 500 and Dow Jones Industrial Average. Market direction is now often gauged by QQQ due to its popularity and performance, especially with the rise of the “Magnificent 7” on the Nasdaq Stock Exchange. However, there are concerns about QQQ’s price direction, with a potential for a significant drop in the near future. Traders are advised to be cautious and consider hedging their positions to mitigate risks in the current market environment.

Rob Isbitts, the author of the article, does not hold any positions in the securities mentioned. The information provided is for informational purposes only.

Read more at Barchart: I’m Preparing for a ‘Bang’ When the Nasdaq Crashes. Here’s How I’m Trading the QQQ ETF First.