Best Financial Markets Analysis Article The pattern developing in the PowerShares QQQ Trust (NASDAQ: QQQQ) since the 11/21 low at 25.05 is a mess, which in and of itself indicates to me that it represents a countertrend rally within an as of yet incomplete larger downmove that should revisit and test the November low in the upcoming days/weeks. If such a scenario proves correct, then the 2/10 recovery high at 31.69 ended the entire countertrend recovery, and the subsequent decline into today's low at 29.64 represents the initial decline of a new downleg.

This afternoon's bounce could climb to 31.00, but from there the Q's should pivot to the downside into a powerful downleg that breaks 29.64, and then slices beneath the Nov-Feb support line, now at 29.20 -- on the way to at least 27.20-26.80 thereafter. Only a climb that hurdles last week's high at 31.69 will invalidate my preferred scenario.

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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