May 15

QID Remains in Downtrend

So far the UltraShort QQQ ProShares (AMEX: QID) ETF still cannot or have not hurdled key resistance at 48.70/75 to inflict any sort of damage to the still-dominant downtrend. The longer the index remains coiled below 48.75, the more likely it represents a bearish consolidation period, which when complete should resolve itself to the downside in a press to new lows. My sense is that if the QIDs fail to make a run at the upside prior to today's last hour of trading, then the bears will take control and attempt to break the pattern in the direction of the underlying trend.
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!