One indicator that complicates the action in the overall marketis the underperformance of the Nasdaq 100 as represented by the PowerShares QQQ Trust (NASDAQ: QQQQ). We notice that the QQQQ has not been able to generate as much excitement as the S&P 500 Depository Receipts (AMEX: SPY) this morning and have yet to hurdle Friday’s high at 33.82.

The pattern carved out off of last Wednesday’s low at 32.96 into current prices does not exhibit bullish form, which warns me that even if the QQQQ pops to 34.00/25, once this rally period runs its course (in a matter of hours), the QQQQ should reverse to the downside amidst significant selling pressure that drives the QQQQ to 32.00-31.70 thereafter.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.