QQQQ Trend Analysis - 1/12/2007

Last week we suggested that SPY might rally to retest the weekly resistance at 142.78. Indeed it was a strong week for the major markets. For the week the Dow Jones Industrial Average gained 158.07 points, or 1.27%. The Standard Poor's 500 Index rose 21.02 points, or 1.49%, while the Nasdaq Composite climbed 68.57 points, or 2.82%.

Oscillators Trend Analysis Candle Symbol Daily Weekly Daily Weekly Mtly Qtly Yrly sticks QQQQ

QQQQ Long-term perspective:
The Nasdaq was the last one among three major indices to reach the long-term uptrend resistance line. QQQQ daily and weekly Lane's Stochastic are strongly overbought. MACD has bearish divergence. All above indicators suggest that Nasdaq is ready to turn down and join S&P 500 and Dow Jones in down trend toward the long-term support line.

QQQQ - Long-Term Trend

QQQQ Short-term perspective:
In addition to all bearish indicators QQQQ had a bearish Advanced Block candlesticks pattern. This pattern is usually considered as a reversal signal. This is a warning that the bull has ran out of steam, and the rally is slowing down. We expect additional weakness of the QQQQ upside price action next week.

QQQQ - Short-Term Trend

Presented by www.thegreedytrader.com Research Group.