| QQQQ Trend Analysis - 12/8/2006 | ||||||||||||||||||||||||
| It was an up week for the major markets. For the week, the Dow Jones Industrial Average gained 113.36 points, or 0.93%. The Standard Poor's 500 Index climbed 13.13 points, or 0.94%, while the Nasdaq Composite rose 24.15 points, or 1.00%. | ||||||||||||||||||||||||
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Our long-term perspective has not change. The weekly uptrend that started on 7/18/2006 is complete or near completion. QQQQ is very close to the long-term uptrend resistance line near 45-46 area. This resistance level should not be broken. After reaching the long-term uptrend resistance trendline, QQQQ should go down in the direction of long-term support.
| QQQQ - Long-Term Trend |
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QQQQ weekly indicators are still oversold, but daily indicators moved out from the oversold area. Price is near the weekly uptrend support line, but not far from the long-term uptrend resistance. At this point there are equal chances that QQQQ move up toward the long-term uptrend resistance line around 45-46 area or down toward the long-term uptrend support (40-39). The short-term trader can try to catch the up wave, but risk/reward ratio is pretty high.
| QQQQ - Short-Term Trend |
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