The PowerShares QQQ Trust (NASDAQ: QQQQ) provide us with a very interesting price picture. What type of pattern is developing off of the May 7 high at 35.39 – a sideways bullish congestion area OR a near-term top? We don’t know just yet, but the morning’s inability to break below 33.00-32.96 support, followed by a powerful upside reversal, certainly suggests that the bulls are back in control and are pushing the Q’s towards a test of critical near-term resistance between 35.00 and 35.40, which if hurdled should trigger upside continuation towards 36.20/50 thereafter.

At this juncture, only a failure of the Q’s to climb above 35.00 – and a downside reversal from that level – will once again morph the pattern into a potential top.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of

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