While the cash SPX violated its 62% support level of the 2002-2007 bull phase, the QQQQ has just tested the similar level at 33.33, which thus far has held the selling onslaught. In that my weekly RSI momentum gauge is making new lows, coupled with breakdown of the SPX, suggests strongly that the QQQQ still has some unfinished business on the downside. My next near-term optimal targets are 31.70/50 and then 30.00-28.90.



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.