Playing the QQQQ with Terry and friends. Message Board

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Strategies & Market Trends : Playing the QQQQ with Terry and friends.

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From: Walkingshadow	5/13/2009 11:12:46 PM
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FWIW, my remaining long position in QQQQ (via QLD actually) got stopped out at the open, and got flipped short. QQQQ is now in a clear correction phase as anticipated. Sell signals are unanimous and definite. Support at the 200 sma and 200 ema has been convincingly broken. Support at the trendline that was established over the last 2 months (but was clearly too steep and unsustainable) has been broken as well. Support at the 40 sma on the weekly chart has also been broken, and the weekly chart now confirms the picture in the daily chart. Next test of support is the lower rail of the BBs, which is currently $32.22, and this area coincides with support from the 50 ema ($32.25). The region below that down to the 50 sma (currently $31.50) is a broad region of support. Also, there is chart support at the bottom of that region. You can see this support region with chart support in the daily chart below. I usually think in terms of regions of support more than just specific, discrete support levels. Regions containing multiple specific support levels seem to be additive, hence more significant. So support levels from top to bottom of this region (spanning about $31.40 to $32.22) are: $32.22: Lower rail of BBs $32.25: 50 ema $31.50: 50 sma $31.40: chart support I don't think these support levels will hold. The BBs look a bit contracted, and I think the index stands a good chance of pushing on that lower rail and blowing it wide open. If so, that would take the index below the rising 50 sma. All IMHO, of course.... DAILY CHART WEEKLY CHART

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