On the one hand, the Q's (Nasdaq: QQQQ) should have continued higher after breaking to the upside above 29.60, but no follow-through occurred. Instead the Q's have pulled back to the 29.40 level in what looks like a minor correction ahead of another attempt to hurdle and thrust from 29.60/65 to 30.20/50. Only a failure to rally followed by a break beneath 29.00 will indicate that the Q's ended a weak rally phase and are in the easily stages of a nasty decline that should revisit the January lows near 28.



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.