QQQ’s declined from December 6th highs in a zigzag pattern (5-3-5), visible on the 30 min. chart, and bottomed on 12/14. After that, the Q’s rallied in 5 waves and pulled back. If the pullback is over, the recent low at near 39.50 should remain intact. The uptrendline on the hourly chart, which supported the advance since November 21, is currently passing at around 40, and likely should not be penetrated for long. The QQQ’s stochastic has turned up, and the stock is sporting a bearish MACD divergence on the daily chart.
The rally in JDSU topped out on November 19 and since then declined in a larger zigzag then that of the QQQ’s. Late today the stock sold off and (possibly) completed the wave 5 of ‘C’ of the zigzag. If that ‘C’ wave turns out to be an Ending Diagonal (which it may), it is likely to bottom near 8. S-T trendline support for JDSU in its current decline is around 8, which happens to be a major S/R level on the daily chart over the past several months.
Alternatively, JDSU is a short term buy IF it rallies above 10, thereby breaking resistance, AND violating the bottom of the (presumed) ‘A’, eliminating the possibility of it being a ‘1’ down. The stock is oversold.
Few more brief comments…
SPY… Broadening Formation since mid-November. Supposed to be bearish, but the previous one in October-November broke out up.
What is the hourly DIA trying to do?
AMCC, RFMD… Pattern is a lot like JDSU, maybe not as clean.
BEAS… looks like a symmetric triangle so far.
CREE… bounced off the upper line of a trading channel. The rising lower trendline now is at 26.
VIX after a consolidation broke to new low levels (close 23.57). How low will it go? The low in July reached a touch above 20. S-T resistance now should be near 24.
All in good fun and FWIW. |
