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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: DOUG H who wrote (3465)	1/5/2005 10:39:33 PM
From: Walkingshadow	Read Replies (2) of 8752

Okay, so QQQQ did indeed blow through the lower BB rail, and proceeded on down to first support as I anticipated. There, supportive volume that stopped the decline for now, but I don't think this correction is over yet. Message 20912362 Now the extreme contraction in the BBs have been relieved somewhat, having expanded from 1.0 to 1.6. That means the strength of the downtrend has been largely dissipated for now. Volume today was mostly resistive. I see the next major support below at $37.90, which is old chart support. But now there are signs (mostly from volume patterns, internals, and a few tentative indications from the chart) of a short-term reversal here. I think most likely we will see a short term reversal that will not last long at all (perhaps only intraday), followed by a continuation of the medium-term correction. That should easily take QQQQ down to test $37.90 support. The market has accumulated a lot of resistive volume, and is processing that. But the longer term trend is still decidely bullish. So I look for a short term reversal tomorrow lasting just a short while (possibly less than one session), then QQQQ will move down to test lower support at $37.90. T

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