Another failed rally already this morning? Sure looks like it, right? On one hand, my hourly RSI is showing glaring positive divergences that in the past have elicited a powerful bullish response. But not this time, so far. My pattern work is telling me that the Q's (QQQQ) are very close to one of those sustainable recovery rally efforts, but likely need yet another loop to the downside into the 46.60/20 target zone prior to my expectation of a potent rally that projects to 48.50 and then 49.20.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.