Oct 27

Q's Breaking Down?

by Mike Paulenoff, Fri October 27th, 2006

The BIG picture of the Q's could prove to be very interesting now. Let's notice that yest.'s spike tonew recovery highs at 42.92 hurdled the Jan.-Oct. resistance line, which appeared to unleash new buying that should propel the price structure above both prior 2006 highs at 43.05 (Apr.) and 43.31 (Jan.). Instead of today's action extending and acceler- ating off of yest.'s "upside breakout," the weakness has pressed the Q's back below the upside breakout point of 42.50, and could be about to threaten to break below yes.'s low at 42.22-- which would be "tech- nically significant" from a near term perspective. With 2 hours remaining in the session, on a Friday, amidst a powerful uptrend, let's not jump to conclusions just yet. Suffice it to say, however, that a CLOSE below 42.50 will be considered negative, while a CLOSE below 42.22 will be considered damaging. MJP 10/13/06 2 PM ET (42.35)
Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!