QQQQ is now showing clear buy signals, at least using the faster stochastic setting:
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Using the slower stochastic, confirmation of the early buy signals appears imminent, likely tomorrow:
139.142.147.218
The index futures are currently rallying impressively, and there was key earnings news out after the close that was very good.
However, despite the clear indications that the medium-term correction has ended, I expect QQQQ will not show it's hand so readily, and will again revisit and successfully test the same support levels that held here (about $34.75 or so). One reason I think this will happen is the volume patterns. Overall, there is a clear domination of supportive volume that will drive prices upwards in a sustained (but not necessarily sharp) fashion. However, there is still significant leftover resistive volume that has not been fully dissipated.
So I think QQQQ will rally for most of the week, but late in the week will again head south, possibly even very strongly like last week. This will fool a lot of people into believing that we are heading for significantly lower ground, but about the time bearish growling gets very loud and QQQQ drops below $35 a bit, the market will suddenly rebound off the support levels successfully tested yesterday, leaving talking heads who are taking bearish worriesome tones stepping on their tongues and scrambling to find "reasons." This will probably take until early next week, leaving us with a reversal candle or a modestly bullish white candle with a significant upper shadow on the weekly chart.
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Not to worry.... they never run out of reasons. There are ample canned explanations for anything the market does that can be recycled whenever necessary.
Beyond that, I expect QQQQ to successfully challenge overhead at $36 within 2 weeks, probably by late next week.
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