More Room to Climb for Nasdaq Q's?

By: Mike_Paulenoff

Either the rally off of Friday's low at 25.71 to this morning's high at 26.80 in the PowerShares QQQ Trust (Nasdaq: QQQQ) is another run-of-the-mill failed recovery bounce or it is a deceptive start of a potent rally period that has considerably more room to climb.

Right now, the majority of my near-term work argues for the latter scenario, which if accurate should propel the Q's to an optimal target zone of 27.70-28.00 and possibly to 30.00 prior to completion. At this juncture, a decline that violates 26.00 will weaken the developing pattern, while a break of Friday's low will wreck it altogether.

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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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