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Q's Don't Exhibit Bullish Form
One indicator that complicates the action in the overall market (S&P 500) is the underperformance of the Nasdaq 100 as represented by the PowerShares QQQ Trust (NASDAQ: QQQQ). We notice that the Q’s have not been able to generate as much excitement as the S&P 500 Depository Receipts (AMEX: SPY) this morning and have yet to hurdle Friday’s high at 33.82. The pattern carved out off of last Wednesday’s low at 32.96 into current prices does NOT exhibit bullish form, which warns me that even if the Q’s pop to 34.00/25, once this rally period runs its course (in a matter of hours), the Q’s should reverse to the downside amidst significant selling pressure that drives the Q’s to 32.00-31.70 thereafter.
