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By Mike Paulenoff, www.MPTrader.com
Since May 19th- for over two weeks- the Q's have been carving out a high level sideways coil type of consolidation pattern. Until this AM's spike to the upside from 49.00 to 50.00 I was expecting a deeper decline, into the 48.25/00 area for a test of both the prior pullback low and the March-May support line. However, yest.'s late-session swoon to 48.67 was THE LOW for the most recent decline (from the 5/30 rally peak at 50.24). This Am's upside reversal strength leaves little doubt that the post 5/19 coil pattern is stronger than I had originally envisioned. What now? The coil should resolve itself with a breakout to the upside, which means that any forthcoming sudden weakness should be contained above 49.00 prior to a thrust too new recovery highs projected into the 50.90-51.30 target zone.
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!
