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Strategies & Market Trends : Playing the QQQQ with Terry and friends.
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To: sammy™ -_- who wrote (4755)5/12/2009 9:49:38 PM
From: Walkingshadow  Read Replies (1) of 4814
 
Not sure what the cosmic significance of that might be..... Have Gun Will Travel??

Anyhow, here's the current chart on QQQQ.

1. There are well-developed technical sell signals in place in Williams %R and both the fast and slow stochastics. Some of the other technical indicators such as OBV have not signaled, or are equivocal, but this is not unusual at all. Most often, there is not unanimous consensus of technical indicators at market inflections, partly because they respond with differing speeds.

2. Candlesticks look equivocal to me. They are not strongly indicating up or down at the moment. The bodies look bearish, but the tails below look modestly bullish. Not a good signal one way or another really. But last Thursday's very powerful bearish candle is an ominous sign that is often seen just after a medium-term market top. The kiss of death is the "lower high," where the index rallies after such a bearish candle, but fails to equal or exceed the previous high just before the bearish candle. If that occurs here, that will be a very bearish sign. Because the index has failed on 3 subsequent days to venture very far into the body of that candle suggests weakness, and also suggests that it will not be able to set a new high.

3. QQQQ is testing support from both the 200 sma and the middle of the Bollinger bands (i.e., the 20s sma). This is a pretty strong support level. This is the first time QQQQ has traded above the 200 sma since last August. It is not unusual for an initial successful test of overhead resistance to subsequently fail. Sometimes multiple such tests are required before the stock/index continues up. But the jury's still out here.

The technical indicators argue that the test will be unsuccessful. I guess we'll see soon enough.

Terry

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