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As tenuous as the SPY and e-SPU patterns might appear so far today, let’s notice that the PowerShares QQQ Trust (Nasdaq: QQQQ) has carved out a symmetrical triangle or coil since last Thursday’s peak at 39.49, which is a much more constructive pattern than the one carved out by the S&P indices. Based on the QQQQ pattern, my sense is that my “one more thrust scenario” is alive and well – and if so then the Q’s will lead the run on the upside. In the case of the Q’s, I will expect a pop to new recovery highs above 39.49 into the 39.80-40.10 target zone. Only a decline that breaks 38.93 will wreck and invalidate my preferred scenario.
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!
