The daily chart on the PowerShares QQQ Trust (Nasdaq: QQQQ) is scary because is so bullish – and represents a much more powerful pattern than the SPYs. The reason that it is scary is because the Q’s are poised to confront the declining 200 DMA, now at 33.34, which is 3% above current prices. However, my upside measured targets off of the huge base pattern are 35.20/40, and then 38.00. The weakness earlier in the week in the Q’s tested and held critical intermediate-term support at 32.00-31.80 and since yesterday morning the price structure has turned up—and is accelerating towards a test of the 200 DMA (34.50 area). Only a plunge that breaks 31.80 will wreck the near and intermediate-term bullish set-up.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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