As it turned out, last week the QQQQ failed to hurdle multi-month resistance at 31.40/70 and instead have embarked on a correction that so far has returned the price structure for a test of its rising 9-day moving average (now at 29.73). However, judging from the juxtaposition of the RSI and Slow Stochastics, we should expect the QQQQ to press lower into the 29.00 area prior to the next sustained upmove within its larger, base-like intermediate-term recovery period. Any intervening rally strength should be thwarted in the 30.20/40 area, after which the QQQQ likely will loop to the downside for a run at 29.00 to complete the correction off of Thursday high a 31.46.



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.