Market Analysis for Jan 12th, 2005
Notice on the enclosed hourly chart that although
the Qs rallied off of their earlier spike low at 38.01,
the rally has not inflicted any meaningful damage
on the portion of the downtrend that started after
Mon.'s rally peak at 38.87. Inability of the Qs to
hurdle important micro resistance between 38.45
and 38.60 will be a very negative sign, indeed.
On the otherhand, only a rally that hurdles 38.60,
and follows-through to break above 38.87 will trigger
meaningful upside reversal signals- that point to considerably
more strength prior to the resumption of the dominant down-
trend. For the time being, the micro and near term charts
are telling us to remain short.
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