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Upside Reversal for the Q's

Upside Reversal for Q's
By Mike Paulenoff, www.MPTrader.com

Since May 19th- for over two weeks- the Q's have been carving out a high level sideways coil type of consolidation pattern. Until this AM's spike to the upside from 49.00 to 50.00 I was expecting a deeper decline, into the 48.25/00 area for a test of both the prior pullback low and the March-May support line. However, yest.'s late-session swoon to 48.67 was THE LOW for the most recent decline (from the 5/30 rally peak at 50.24). This Am's upside reversal strength leaves little doubt that the post 5/19 coil pattern is stronger than I had originally envisioned. What now? The coil should resolve itself with a breakout to the upside, which means that any forthcoming sudden weakness should be contained above 49.00 prior to a thrust too new recovery highs projected into the 50.90-51.30 target zone.

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