Market Analysis for Sep 27th, 2004
For today's Mid-Day Minute, Mike writes: The earlier downside spike in the QQQ's hit a low of 34.48, prior to popping back to the upside into the 34.65 area. The Fibonacci 38% retracement level of the entire Aug.-Sept. upmove from 32.35 to 35.85 cuts across the price axis at 34.51, which is right in the vicinity of today's low so far. Given the downside hourly RSI momentum NON-confirmation of the first hour weakness, coupled with the support (so far) of the 38% Fibonacci level, NOW we have to be on the look-out for a basing period and subsequent recovery rally- at the very least to close this AM's unfilled downside gap between 34.71 and 34.85, and perhaps into the 35.00 resistance area prior to a resumption of weakness. Inability of the Qs to "take advantage" of the near term technical divergence and Fibonacci support around 34.50 followed by a decline to new intraday lows should trigger additional weakness into our optimal near term target zone of 34.20-34.00.
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