Be alerted when Mike posts an article
The PowerShares QQQ Trust (Nasdaq: QQQQ) are approaching important near-term support between 35.00 and 34.75, which must contain forthcoming selling pressure to avert sell signals that will point to a retest of the May low at 32.96 next. The ability of the Q’s to hold above the 6/23 low at 34.77 will leave open the interpretation that all of the action off of the 6/11 high at 37.29 could be a correction of the May-June upleg (32.96-37.29) rather than a top formation.
If the bullish interpretation remains viable, and somehow the Q’s manage to claw their way back above this morning’s high at 35.60, I will get buy signals that the 6/10-7/7 decline is complete and that another upleg is in progress that should revisit the 37.00/30 high area prior to the resumption of weakness.
Right now I am watching from the sidelines to see if the Q’s have established a significant near-term low. I will give the market 1-3 hours to make a run at 35.50/60 before making a decision about committing capital.
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!
