MIKE PAULENOFF'S ETF TRADING DIARY
The Q's (NASDAQ: QQQQ) are pressing towards a 50% giveback of the prior 5-session upmove, at 27.25, which is the next significant support plateau beneath the 11/25 pullback low of 27.52. If 27.25 does not contain the selling pressure, then we should expect downside continuation that fills the gap area from 11/24 in the 27.00-26.65 target zone. However, the extreme oversold condition on a micro timeframe suggests strongly that an intervening rally could very well emerge that propels the Q's to 28.30/50 prior to another loop to the downside that fills the gap. Keep in mind that such a scenario --intervening rally and then another decline to fill the gap -- all could occur between now and tomorrow morning, after which my short-term pattern work argues for upside continuation into recovery high ground.
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