My hourly pattern work is starting to warn me that the QQQQ are nearing the completion of its 3-session recovery rally. Where is the peak? I come up with a target window of 47.19 to 47.57, both of which are located beneath the prior significant recovery rally peak at 47.68. As long as 47.68 remains a viable prior high, I will consider the action off of the 46.12 low as a countertrend move ahead of the next downleg and within the dominant bear trend. A decline beneath 46.95 will begin to compromise the current rally effort.



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.