My pattern and momentum work in the QQQQ argue that the downleg from the June 2008 recovery rally peak at 50.61 is at or is very near completion ahead of a potent recovery rally period that should propel the QQQQ into the 33.00-34.00 target zone. Can we loop down and retest this morning's low at 26.00, and possibly make new lows? Definitely, but relatively marginal new lows should be short-lived prior to a vicious snapback rally period.



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.