Dec 13

Potential Upside Acceleration in the QID (ProShares UltraShort QQQQ)

by Mike Paulenoff, Wed December 13th, 2006

On one hand, today's stock market action is dreadfully boring -- - perhaps typical of year-end action. On the other, the chart pattern represented by the QIDs (ProShares: 2x the inverse performance of the NDX) suggests that if the current rally extends above 54.10, a month-long congestion area will have morphed into a base or rounded near-term bottom that has potential to trigger upside acceleration into the 57-58 target zone.

As of this moment, however, the month-long pattern still represents a bearish congestion area within the dominant downtrend, which usually resolves itself in the direction of the underlying trend -- in this case to the downside in a spike to new lows projected into the 49.80/50 target zone.

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!