From Nvidia To Netflix, QQQ Is On Fire - But Will It Burn Out?

The Invesco QQQ Trust (NASDAQ:QQQ) has been on a tear, rallying 20.53% over the past month and pushing into its most overbought zone since last July.

Nasdaq $QQQ reaches most overbought level since July 🚨 pic.twitter.com/SEvsP5Uc7K

— Barchart (@Barchart) May 19, 2025

Powering this surge are tech juggernauts like Nvidia Corp (NASDAQ:NVDA), which soared nearly 40%, and Netflix Inc (NASDAQ:NFLX), up over 20% in the same period.

With investor enthusiasm running hot, QQQ now trades at $520.20, reflecting both momentum and mania.

All Signals Point To Bullish

Chart created using Benzinga Pro

Technically, the trend remains strongly bullish. QQQ trades above its five, 20, and 50-day exponential moving averages, while its eight-day simple moving average (SMA) of $514.13, 20-day SMA of $492.02, and 50-day SMA of $474.66 all flash bullish signals.

Even the longer-term 200-day SMA sits well below at $493.11, underscoring the ETF’s sharp upward break. The Moving Average Convergence Divergence (MACD) reading of 14.66 and a Relative Strength Index (RSI) of 70.17 confirm that QQQ is in overbought territory.

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XLK Joins The Tech Euphoria

The Technology Select Sector SPDR Fund (NYSE:XLK) isn't sitting quietly either – it's gained 24.84% in the last month. Microchip Technology Inc (NASDAQ:MCHP) has exploded +54.07%, while Seagate Technology Holdings PLC (NASDAQ:STX), Micron Technology Inc (NASDAQ:MU) and Palantir Technologies Inc (NASDAQ:PLTR) have each gained over +39%, as chipmakers and AI stocks dominate the leaderboard.

Caution: Euphoria Zone Ahead

While bulls are firmly in control, QQQ's RSI suggests we may be entering euphoria territory, where rallies can exhaust themselves.

With many of the big names already logging massive gains, investors now face the classic question: Is this the breakout before a breather, or the setup for a sharper reversal?

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