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What I'm Watching: QQQ at the 50-Day, Chips in the Zone, and Meta's 20-Day
What I'm Watching · October 23, 2026
Wednesday's Chart Room had tech taking the lead back and Meta delivering after the bell. Earnings season keeps rolling, and three charts from that letter are the ones I'm keeping on my screen into the weekend: QQQ at its 50-day, the chips sitting in their demand zone, and Meta trying to get back above its 20-day. Charts are through Wednesday's close. Here's what each one has to do.
QQQ Tagged the 50-Day. Now It Has to Close Above It.
QQQ rose 1.05% Wednesday to 725.20. The high of the day, 727.95, poked just above the 50-day moving average (726.75), and it closed about a point and a half under it. The 5-day average (719.80) is now below price, and the 20-day (739.07) is the next level overhead.
The 700 line I flagged on Sunday was never tested. Last Friday's low (707.23), inside the 700-to-710 demand zone, is still the floor for this bounce.
Hans's take: A close above the 50-day is the confirmation I want. Get it, and the 20-day near 739 is next. Miss it, and 707 to 727 stays the range.
Chips Are Holding the Demand Zone
SMH gained 1.89% to 556.70, and the Philadelphia Semiconductor Index rose 1.97%. That's a second straight day holding the September demand zone, roughly 537 to 550, after Tuesday's brief undercut to 536.23.
It's still well below the 50-day (577.56) and the 20-day (593.37). And after the bell, the chip read split. Lam Research fell about 7% despite a record quarter because the low end of its guidance came in below estimates, while Texas Instruments rose about 1% on an outlook above consensus.
Hans's take: Holding the zone is a start, not a turn. Lam's reaction tells you “good” isn't good enough for chip equipment right now. I want the 50-day back before I call the chip low.
Meta Delivered. The 20-Day Is the Line.
In the regular session Meta rose 0.47% to 697.52 after dipping to 689.68, just under the 690 line, and closing back above it. Volume was 28.2 million shares against a 21.1 million average.
After the bell, revenue rose 26% to $64.6 billion, the fourth-quarter guide came in at $73 billion to $76 billion, and full-year capital spending was narrowed to $135 billion to $145 billion. A legal settlement charge of about $9.9 billion held GAAP earnings to $3.83 a share; without it, Meta earned $7.40. The stock traded as high as about $725 after hours.
Hans's take: That after-hours high came within a few dollars of the 20-day (729.54). A close above it puts the 770 to 788 supply zone back in view. Lose 690 and the report didn't matter.
Tie the three together and it's one question: is tech ready to lead again? QQQ needs its 50-day, the chips need their 50-day, and Meta needs its 20-day. If they get there together, this bounce has real legs. If they stall at those lines, it's still a range.
One more thing I'm watching that isn't on these charts: credit. HYG closed Wednesday at 76.98, still 92 cents below its 200-day (77.90). Stocks can bounce without credit, but they don't trend without it. That's the confirmation I'm waiting on.
Want every chart, every night? The full Chart Room, every trade as I take it, and my read on volatility all day are inside Trader63, my pro trading community.
Trade smart, stay hedged. — Hans
This material is for educational and informational purposes only and is not investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for all investors. Past performance does not guarantee future results.
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