Market Analysis for Oct 11th, 2005
Yes, the Q's did decline to new reaction lows, breaking
last Thurs. low at 37.92 on the way to the intraday low
at 37.82... HOWEVER, there has been no downside
follow-through, which is a warning signal to the shorts
that perhaps the Q's are sold out for the time being,
and are in the very early stages of a recovery rally up
to the 38.50 area. Let's keep in mind, though, that although
the Q's have warned us about a potential recovery rally,
the price ACTION has failed to confirm that such a rally
is in progress... which will occur if the Q's can hurdle 38.15
for starters, and then the prior rally peak at 38.27. Barring a rally
at least above 38.15, the Q's remain within the dominant micro
downtrend that has developed off of Friday's recovery rally peak
at 38.51. MJP 10/11/05 1:50 PM ET 37.98
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