Jun 28

Q's Due to Correct Before Next Upleg

So much for a pullback, or will the pullback emerge in reaction to the FOMC? Let's put it this way: I would be surprised if the Q's (Nasdaq: QQQQ) climb above 47.80 on a sustained basis without first entering a correction that could press into the 47.40/20 target support zone. If such a scenario unfolds, after the correction, I expect another potent upleg into the 48.25 area. Having said all of the above, I suspect that if the FOMC surprises us with a significant shift towards accommodation, then we might see a vertical lift-off without a correction.
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!