Unfinished Business on the Downside for Nasdaq Q's

By: Mike_Paulenoff

We review the daily chart of the PowerShares QQQ Trust (Nasdaq: QQQQ) that goes back to the all-time high at 55.07 hit on 10/31/07. The price pattern, the RSI momentum configuration, and the volume levels ALL suggest strongly that the Q's have unfinished business on the downside.

In fact, all of the action off of the Nov. 2008 low at 25.05 has the look of a sideways rest/digestion pattern, which when... complete, should resolve itself in a plunge that breaks key near term support at 28.50, which in turn, has the potential to unleash a rapid decline that will retest the Nov. low. From an intermediate term perspective, only a climb above 31.70 will invalidate the current potentially very negative pattern.

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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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