Long the Q's - Market Analysis for Jan 30th, 2008

So far the first hour of trading has expanded the "inside triangle" in the Q's (Nasdaq: QQQQ) towards a test of yesterday's high at 44.72, which so far has contained the early strength. In the aftermath of the minor rally from 44.00 to 44.61, micro support on any pullback now becomes 44.40, then 44.20/00, which must hold to avert a decline that expands the trading range to the downside (a nasty whipsaw that could in fact be in the cards ahead of, and possibly immediately after, the FOMC decision). For the time being, I will remain long, looking for additional strength that pops the Q's above 44.72 on the way to 45.00 before Fed time.