| QQQQ Trend Analysis - 8/25/2006 | ||||||||||||||||||
| All three major indices fell for the week as we expected. The QQQQ gave back 0.47 points, or 1.21%, over the five sessions, despite a modest gain on Friday. | ||||||||||||||||||
| ||||||||||||||||||
| Long-term perspective: Our long-term perspective has not changed. A monthly down trend that started on 1/11/2006 had broken the long-term channel support. The wave 3 of this down wave was completed on 7/18/2006 at 35.54. There are two possible scenarios that we need to consider: 1. The monthly down trend is not over yet and it will unfold as a 5 waves structure. Wave 4 now is completed or near completion and wave 5 down is in progress or about to start. That will make a new low. 2. Monthly down wave was an A-B-C corrective zigzag. It is completed now, and a new up trend started on 7/18/2006. The first sub wave up is completed or near completion, and a short-term consolidation is in progress. | ||||||||||||||||||
| ||||||||||||||||||
| Short-term perspective: Pull back is weak so far. It looks more like consolidation than like a next down impulse wave. The daily technical indicators are still close to the overbought area so consolidation may continue for the next week. We have to wait and see which long-term scenario will unfold, but the weaker is the down move the more chances are the #2 scenario is in play. | ||||||||||||||||||
| ||||||||||||||||||
| Presented by www.thegreedytrader.com Research Group. | ||||||||||||||||||
Sunday, August 27, 2006
QQQQ Trend Analysis - 8/25/2006
