Market Analysis for Nov 5th, 2004

Honestly, I am not sure what to make of the intraday pattern in the QQQs right here. Why? Because this AM's decline from 38.17 to 37.61 merely closed the opening up-gap, but did NOT inflict any serious damage to the overall constructive chart condition from the Oct 26th low at 35.41. In other words, to generate some significant sell signals in the Qs, the price structure has to break 37.60 again. Barring such a break, however, the Qs will continue to back and fill to the upside into the 38.00/10 area again and could make yet another new high in our preferred target zone of 38.10/30. It is with the foregoing in mind that we sit on the sidelines for a while longer prior to committing funds to either side of the Qs.

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