Market Analysis for Oct 5th, 2004

The QQQs pivoted to the upside off of this morning's low at 36.16 -- right at the bottom of the gap area left behind from Monday's higher opening. The Q's have since climbed to 36.49 (as we speak) and in so doing are testing the micro resistance line off of yesterday's high at 36.62. A sustained rally above 36.45 should trigger additional strength that propels the price structure to retest yesterday's high at 36.62 -- and then into new high ground. Our optimal upside target zone for this upmove is 37.10/.30. Only a decline that breaks this morning's low at 36.25 will weaken the intraday pattern, while a decline below 36.16 will argue that the correction off of yesterday's high has further to run on the downside -- into the 35.90/.85 area.

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