Nasdaq 100 Trust Shares (QQQQ) Trend Analysis - 2/22/2008

The QQQQ has dropped below the Lower Bollinger Band level.

It was a mixed week for the major markets. For the week the Dow Jones Industrial Average climbed 32.81 points, or 0.27%. The Standard Poor's 500 Index climbed 3.12 points, or 0.23%, while the Nasdaq Composite gave back 18.45 points, or 0.79%.

QQQQ Long-term technical analysis: Our long-term perspective has not changed. The QQQQ has turned down on October 31 2007 from the long-term rising channel resistance. The long-term uptrend is completed, and a first wave of a new long-term downtrend is in progress. Weekly William's Percentage Range (W%R) is oversold.

QQQQ Short-term technical analysis: The current down trend started on October 31 2007 at 55.07. A third sub wave was completed on Tuesday, Jan.23 when QQQQ has reached a long-term support area at 41.61. A fourth sub wave is in progress now and forming a symmetric triangle pattern.

QQQQ - Mid-Term Trend

On Friday QQQQ has dropped below the Lower Bollinger Band level (42.86) reaching a symmetric triangle support line around 42.86. Then during the last trading hour, it has rallied gaining more than 2.5% and forming a Dragonfly Doji candlestick pattern. This pattern may signify the trend pause or reversal depending on where the Doji occurs. The Dragonfly Doji candlestick pattern is likely to mark a reversal when it accrues at a support/resistance level or at the lower/upper Bollinger band. A Bullish Dragonfly Doji has moderate reliability and it is considered as more reliable reversal signal, if the next trading day is characterized by one of the following: a white candlestick, a large gap up or a higher close.

QQQQ - Short-Term Trend

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