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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: Walkingshadow who wrote (4151)	1/23/2005 11:22:04 AM
From: Vendit™	of 8752

My analysis of the QQQQ dated 1/23/2005 is as follows: I drew the following custom chart of the QQQQ which shows that the QQQQ has shifted from consolidation to a continuation of the previous correction that we spoke of two weeks ago. Having fallen through the six month trend line on Tuesday of the week before last after testing support at $38.00, $38.00 failed on Thursday of last week. themarketwind.com Analyzing the trend line; All hopes for a bounce back above the upper trend line were dashed last week when the QQQQ gapped below support at $38.00. I added the Zigzag study to the chart this week which clearly shows the QQQQ on a slide towards next support as indicated on the chart above. First support level is $36.58. Analyzing the Power Candlestick; After last week’s drop we now have a new power candlestick to take into consideration as we watch the QQQQ. I have this stick highlighted in yellow on the chart above. This stick’s top, middle and bottom show us where the next three lower support levels are for the QQQQ. Expect the QQQQ to move to the top of the stick over the first few sessions of the coming week and then bounce at the top of the power stick, i.e. the first relief rally. ($36.58) Analyzing the Bollinger Bands; The Bollinger Bands are widening which indicate a continuation of the trend. I consider this a confirming indicator of what the chart has revealed thus far based on my above analysis. Analyzing the stochastic oscillator; The stochastic oscillator is running flat with no indication of a buy signal. Comparing it to the MACD oscillator which is showing us that the trend has no momentum through the close on Friday, I am convinced that there is more downside to come. Analyzing the Volume; The trading volume during the last two days of last week was greater than normal which means that the correction and drop below $38.00 was meaningful. Over the next several weeks I believe that the QQQQ will fall back to the $35 level before a full technical rebound can begin. There will be short-lived relief rallies on the way down. See this three year chart of the QQQQ: themarketwind.com Reid

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