| It was an up week for the major markets. For the week, the Dow Jones Industrial Average gained 138.03 points, or 1.12%. The Standard Poor's 500 Index gained 17.25 points, or 1.22%, while the Nasdaq Composite climbed 19.84 points, or 0.81%. | |||||||||||||||||||||||||||
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The monthly uptrend that started on 6/14/2006 is near completion. It has a five waves impulse structure, and final wave five is in progress now. Wave five is forming MACD bearish divergence. It is a sign that the uptrend is loosing the strength. We expect the monthly uptrend complete within the next several weeks, and a new downtrend start toward multiyear trend support line.
| QQQQ - Long-Term Trend |
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The last fifth wave of the long-term uptrend is in progress. The wave is forming a termination pattern that may last into the year-end. Daily and weekly technical indicators are overbought, and price is near uptrend resistance line. There is not much room for the upside move. The risk/reward ratio is high.
| QQQQ - Short-Term Trend |
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