QQQQ Trend Analysis - 11/17/2006

QQQQ Trend Analysis - 11/17/2006

It was an up week for the major markets. For the week, the Dow gained 1.9%, while the S&P 500 rose 1.5%, and the Nasdaq Composite climbed 2.3%.

Oscillators Trend Analysis Symbol Daily Weekly Daily Weekly Mtly Qtly Yrly Alerts QQQQ SPY

S&P 500 Long-term perspective: The S&P 500 is now near the long-term channel resistance line. For the last month we've considered two possible scenarios for S&P 500. 1. The S&P 500 index turns from the long&term channel resistance line and moves down until it reaches the channel support line. 2. S&P may form a rising wedge along the channel resistance line. Scenario # 2 is in play now. S&P is forming a rising wedge along the channel resistance line. S&P has bearish divergence that a rising wedge often forms. The current rising wedge presents wave 5 that is going to complete 5 waves impulse started on 6/14/2006.

S&P 500 Trend

QQQQ Long-term perspective: QQQQ broke the long-term resistance area between 43.05 and 43.31, and closed on Friday at 44.30. We considered two long-term QQQQ scenarios correlated with S&P 500 long-term perspective. 1. If S&P 500 scenario #1 is in play, then QQQQ is forming double top pattern and move down to retest its July low - 35.54. 2. If S&P 500 scenario #2 unfolds, QQQQ has chances to break 43.05 - 43.31 and even reach long-term uptrend resistance area around 45-46. As scenario # 2 is in play for S&P 500, QQQQ has broken 43.31 resistance and is moving toward a long-term uptrend resistance area around 45-46

QQQQ - Long-Term Trend

QQQQ Short-term perspective: While the QQQQ weekly uptrend has broken 43.31 resistance level and may be heading toward the long-term uptrend resistance area around 45-46, our short-term perspective is bearish. QQQQ is near the weekly uptrend resistance level, daily and weekly technical indicators are strongly overbought. S&P 500 has 150 overbought members while only 1 oversold.

QQQQ - Short-Term Trend

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