Unless and until the QQQQ hurdle and sustain above 45.45, the pattern carved out since July 1 continues to exhibit lower-lows and lower-highs -- otherwise defined as a downtrend. A rally that hurdles 45.45 will be my first (relatively minor) signal that the near-term downtrend in the QQQQ has been neutralized, while a climb above 45.90-46.25 will trigger new near-term buy signals. As of this moment, however, neither the pattern off of Friday's low nor the momentum configuration impress me as indicative of a significant low in place.



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.