In a few of my recent updates in the Q's (NASDAQ: QQQQ), I mentioned an optimal next trading target zone of 33.00 to 31.50. With this morning's low at 31.35, I am on alert, watching the pattern development off of the new low in an effort to determine if the Q's are a high confidence buy (yet). With that in mind, let's notice the near-term declining tops line off of yesterday's mid-session peak prior to the last hour plunge.

Every rally peak has failed at a price lower than the prior rally, which is a warning signal that the Q's have to do more work off of the 31.35 low before a sustainable recovery rally period emerges. In any case, to get anything going on the upside, the Q's must hurdle 33.90 to take out the prior rally peak AND the declining tops line.

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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