| QQQQ Trend Analysis - 9/1/2006 | ||||||||||||||||||||||||
| Last week the market rallied again. All three major indices had a nice week. The QQQQ advanced 0.76 points, or almost 2% and posted its biggest monthly gain since January. | ||||||||||||||||||||||||
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| 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 near completion and the wave 5 down is 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 is near completion. | ||||||||||||||||||||||||
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| Short-term perspective: We were right that previous down week was a correction, but it appears too short to reset technical indicators. Last week rally brought all three market indices in overbought area. We expect the market to turn down pretty soon. The QQQQ weekly uptrend resistance is at 39.46(± 0.12). | ||||||||||||||||||||||||
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| Presented by www.thegreedytrader.com Research Group. | ||||||||||||||||||||||||
Sunday, September 03, 2006
QQQQ Trend Analysis - 9/1/2006
