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The PowerShares QQQ Trust (NASDAQ: QQQQ) provide us with a very interesting price picture. What type of pattern is developing off of the May 7 high at 35.39 – a sideways bullish congestion area OR a near-term top? We don’t know just yet, but the morning’s inability to break below 33.00-32.96 support, followed by a powerful upside reversal, certainly suggests that the bulls are back in control and are pushing the Q’s towards a test of critical near-term resistance between 35.00 and 35.40, which if hurdled should trigger upside continuation towards 36.20/50 thereafter. At this juncture, only a failure of the Q’s to climb above 35.00 – and a downside reversal from that level – will once again morph the pattern into a potential top.
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!
