The QQQQ chart looks like a broadening descending megaphone, but NQ (NDX e-mini futures) gives us a slightly different take. Since I usually trust the futures side more, let's look at that chart. The top line is right-angled and this type of broadening descending pattern (with a right angle)usually breaks out to the upside and is bullish. Conservative traders should wait for the breakout (1613), but keep this pattern in mind for support levels if you are trying to front-run it. Should the double bottom at 1557/1559 break, next support is 1443 or so. However, if we hold Tuseday and Friday lows, we could get the upside break.
This entry was posted
on Sunday, July 23, 2006 at 9:22 PM.
