All of the action from Monday's high in the Nasdaq-1000 (QQQQ) at 47.08 appears to be carving out some sort of rest-digestion pattern that exhibits a double-peak at 47.08-47.06 juxtaposed against a series of higher lows off of yesterday's low at 45.93. Based on the developing near-term pattern, the QQQQ remains above 46.50 into the closing bell, and either thrust towards my next optimal target within the final 40 minutes of trading or in reaction to AAPL earnings in the aftermarket. Only a decline that breaks and sustains beneath 46.45/35 will indicate that the corrective pattern has morphed into a pullback that is pressing towards 46.00 prior to the next upleg.



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.