Nasdaq QQQQ Chart Shows Bearish Set-Up
Stock-Markets / Tech Stocks Aug 11, 2009 - 12:12 PM GMTThe PowerShares QQQ Trust (Nasdaq: QQQQ) has been trading beneath key near-term support at 39.20 this morning, which suggests that the market is consolidating ahead of more weakness rather than digesting its losses ahead of a recovery bounce. While it may be too premature to make the call for more weakness directly ahead, we need to be aware that so far today’s intraday profile is setting up for a bearish afternoon session – in particular, the final two hours of trading.
Between then and now, let’s see if the Q’s can 1) hold above 39.00; 2) recover above 39.20; and 3) if so, whether any upside progress can be made that repairs this morning’s weakness – as in a climb to 39.50/70. If none of the above-mentioned recovery parameters are satisfied by about 1:45 pm, then we will need to fasten our seatbelts for a potential plunge to 37.80/50 thereafter.
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