Today's strength in the QID (weakness in the QQQQ) has left behind a pullback low on Friday at 37.06 that has the look of the secondary low of a potential Double Bottom with the May 19 low at 36.84. The top of the "W" pattern resides at a Double Top of 40.93, which the price structure appears to have started to travel towards this morning. Actually, I am viewing the 40.00-41.00 area either as the "upside breakout plateau" or the "ceiling" on the developing pattern. Based on my near- and intermediate-term work, by the end of the week the QID should provide us with clues about the efficacy of the emerging Double Bottom.



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.