I am not sure what to make of the hourly pattern that has been carved-out by the Q's (NASDAQ: QQQQ) since the 9/04 high at 50.00 -- other than it exhibits a series of higher lows and lower highs that have formed a coil pattern. Such a coil-type pattern just off of a recent high usually resolves itself in a thrust to the upside in sympathy with, and to continue, the underlying dominant uptrend.

In this case, that originated at the August pivot low of 44.39. Be that as it may, ahead of the FOMC meeting, who knows what will happen during the next 2 1/2 hours today and throughout tomorrow's AM session? Purely from a technical perspective, as long as 48.60/25 contains any further weakness, the bullish-resolution scenario will remain intact.

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 Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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