As it turned out, last week the Q's (Nasdaq: QQQQ) failed to hurdle multi-month resistance at 31.40/70 and instead have embarked on a correction that so far has returned the price structure for a test of its rising 9-day AMA (now at 29.73). However, judging from the juxtaposition of the RSI and Slow Stochastics, we should expect the Q's to press lower into the 29.00 area prior to the next sustained upmove within its larger, base-like intermediate-term recovery period. Any intervening rally strength should be thwarted in the 30.20/40 area, after which the Q's likely will loop to the downside for a run at 29.00 to complete the correction off of Thursday high a 31.46.

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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