Tune into a special edition of NewsWare’s Trade Talk.CEO of AIQ Systems, Steve Hill joins NewsWare’s Bill Olsen to catch up on how their previous sector analysis worked out as markets have navigated the latest developments on tariffs, and they offer their insight on what sectors to watch in the coming months and which ones to put on the back burner. There is at least one sector that may surprise you that is seeing some strong indicators to the upside and one classically solid sector to be cautious of moving ahead.
In this 45-minute session, Steve Hill, CEO of AIQ Systems, will show you how to create and save customized scans in AIQ, how to sort through scan results using key metrics and how to apply filters to “snipe” the best trading setups quickly.
After the last few weeks’ market turbulence triggered by escalating tariff headlines, April 2 -28, 2025, delivered a textbook bounce—one that Fibonacci traders could spot a mile away. The QQQ, DJIA, and NASDAQ all staged strong retracements, each pulling back close to the 50% from their recent swing highs to the dramatic lows set by the tariff-driven selloff.
A Closer Look at the 50% Retracement
For those who track Fibonacci levels, the 50% retracement is more than just a number—it often signals a crucial moment of decision in market psychology. It’s the point where bulls and bears reassess their convictions. On April 29, all three major indices touched this level in near-perfect unison.
Let’s break it down:
QQQ (Invesco QQQ Trust): After plunging nearly 6% during the tariff turmoil, QQQ bounced back sharply. On 4/29, it retraced exactly 50% of the down move, landing right on the Fibonacci line drawn using AIQ TradingExpert Pro.
DJIA (Dow Jones Industrial Average): The Dow’s recovery was equally telling. It reclaimed 50% of the decline from its January high to the low posted on April 7. Resistance formed precisely at this level, adding credibility to the Fibonacci reading.
NASDAQ Composite: Tech stocks led the rally, and the NASDAQ showed an aggressive bounce. Like the QQQ, it retraced half the loss, with AIQ TradingExpert Pro’s Fibonacci tool providing a clean visual confirmation of market memory at play.
QQQ and DJIA at the 50% retracement
NASDAQ market at 50% retracement
Using AIQ TradingExpert Pro to Catch the Move
At AIQ, we emphasize practical tools that help traders act, not just analyze. The Fibonacci Retracement tool in AIQ TradingExpert Pro offers an intuitive interface for plotting retracement levels from any significant swing high to low—or vice versa. The 38.2%, 50%, and 61.8% levels are automatically calculated and displayed, making it easy to see where price might hesitate or reverse.
What made April 29 especially notable was how cleanly price respected the 50% level across indices. It wasn’t a vague “zone”—it was a laser line, and those who had it on their charts were better prepared to anticipate resistance and manage risk.
What’s Next?
While the 50% retracement is not a guaranteed reversal point, it is often where institutional players test the bounce’s resolve. If price holds below that level, the odds tilt toward a retest of the recent lows. A strong break above it? Then, we could see a move to the 61.8% level or higher.
With markets still on edge from macro headlines, now’s the time to stay sharp. Fibonacci tools like those in AIQ TradingExpert Pro give traders a clear visual framework, especially during volatile, headline-driven price swings.
Final Thoughts
If you’re not already using Fibonacci levels in your trading, April 29 was a perfect demonstration of their relevance. Whether you’re swing trading or managing a portfolio, these retracement zones offer insight into crowd behavior and price structure. It was noteworthy that the SP500 index had progressed further than 50% retracement (55%)
Stay tuned as we monitor whether this 50% level becomes a ceiling—or just another stepping stone on the road to recovery.
AIQ code based on Perry Kaufman’s article in May 2025 issue of Stocks & Commodities, “Trading The Channel,” is shown here and also provided in a downloadable code file. This encodes the system that the author describes as a linear regression slope trading system, which goes long when the linear regression slope goes above the zero line and exits when the linear regression slope drops below the zero line.
! TRADING THE CHANNEL
! Author: Perry J Kaufman, TASC May 2025
! Coded by: Richard Denning, 3/15/2025
! Example of trading the linear regression slope:
Len is 20.
C is [close].
LRslope is Slope2(C,Len).
Signal is iff(LRslope > 0,1,-1).
Buy if Signal = 1 and valresult(Signal,1) = -1.
ExitLong if Signal = -1.
The imagee below shows an example of the linear regression slope line plotted on a daily chart of QQQ (Nasdaq-100 ETF).
One of the most powerful, yet underutilized technical indicators in AIQ TradingExpert Pro toolkit is the MoneyFlow indicator. Unlike traditional volume-based indicators, the AIQ MoneyFlow combines price action with volume to give a more accurate picture of where institutional money may be flowing. It can be beneficial for timing entries—helping traders spot early accumulation phases before price breakouts occur. At its core, the indicator compares up-volume to down-volume, adjusting for price movement. Important signals occur around trends and trend breaks, and non conformations (highs and lows do not agree) and divergences (trends do not agree) with the price action of the ticker.
Take, for example, the recent action in Nvidia (NVDA). In mid-March 2025, the AIQ Money Flow indicator continued to hold up during the significant downturn in price.
Traders who acted on this early shift, using it as confirmation alongside a breakout pattern, could have caught a strong upside move. Traders can fine-tune this signal to fit a range of strategies, from swing trades to longer-term entries.
The key benefit of using AIQ’s Money Flow indicator for entries is its unique blend of volume and price momentum analysis. It can be combined with group/sector analysis and price momentum indicators as a dynamic tool for identifying stocks where the “smart money” might be stepping in. The Money Flow indicator is a must-watch metric for traders looking to upgrade their entry strategies, especially when markets are volatile and traditional signals are slow
