| QQQQ Trend Analysis - 9/8/2006 | ||||||||||||||||||||||||
| As we expected all the major US indices were negative last week. QQQQ moved down after reaching the resistance level on Monday and fell 0.92% for the week. | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
| 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. The wave 4 now is completed or near completion and the wave 5 down is in progress or about to start. That will make a new low. 2. The 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 might be completed or near completion. | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
| Short-term perspective: QQQQ daily and weekly technical indicators moved out of the overbought area while DIA and SPY weekly Lane's Stochastic are still overbought. DIA had on Friday a bearish Downside Tasuki Gap candlestick pattern. It is a continuation pattern that appears usually in a strongly downward moving market. The market indices will most likely continue moving in the downward direction. Any move up should be short, as all indicators are still close to the overbought area. | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
| Presented by www.thegreedytrader.com Research Group. | ||||||||||||||||||||||||
Sunday, September 10, 2006
QQQQ Trend Analysis - 9/8/2006
