Nasdaq Narrowing Range Suggests Downside Breakdown

By: Mike_Paulenoff

Do you believe the tight range in the Q's (Nasdaq: QQQQ) today? One thing is for sure -- this narrow range should not last much longer prior to a spike in one direction or other. Meanwhile, the key support line off of the 9/20 low at 49.92, which cuts across the price axis now at 52.80, remains intact and is containing further price deterioration. A violation of 52.70 and downside follow-through are necessary to trigger more significant sell signals that point to 51.75/50 next. On the other hand, a climb above 53.28/30 is needed to trigger upside continuation to at least 53.50/60.

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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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