Since some of you trade QQQQ, here is a useful chart. As you can see, we are still in the downward channel but have managed to close above 38.2% retrace at 38.77 five days in a row. We are due for a bounce, but notice the July gap at 38.40 which we still haven't closed. It's not far below the 50 dma at 38.50. Unfilled gaps are magnets when you get this close, so keep an eye on it. Watch resistance at 39.19, 76.4% of 2004/2005 and a little further up, channel resistance at 39.29 and 23.6% July rally. NQ futures and COMP hit 50 dma and bounced, giving bulls a reason to step up to the plate at the close. Let's see how much they have in the tank.
click on chart for full size
click on chart for full size
This entry was posted
on Monday, August 22, 2005 at 5:30 PM.
