The QQQ Sustained Significant Near-Term Technical Damage

Now that the PowerShares QQQ (QQQ) has plunged beneath its June support line yesterday at 78.80, and then violated prior pullback support at 78.30, its major uptrend has been broken and meaningfully damaged.

From a pattern perspective, we can make the case that the QQQ has dropped out of a rising-wedge formation, which also means that a major correction likely is in progress.

Let’s notice that the QQQ is holding support along its Aug highs in the 77.30/10 area, which must contain forthcoming weakness to avert downside continuation towards my next optimal-target zone at 75.80/60.

Any strength will hit initial resistance at 78.30.