It's pretty straighforward now: QQQQ needs to hold its 50 day moving average at all cost. Right now, the chart is looking bullish, with the 10 dma about to cross the 50 dma for the first time in months. We are also short term overbought. There is a gap to close at 37.70, should we lose 50% projection July at 38.21. Note also the ex-trendline resistance now support around 38.30/38.40.
I put up QQQQ, but NQ has the same parameters. Semis and SMH will be your lead player in this, so watch them carefully. As you know, I think this rally has legs all the way into Labor day, but as usual, we will let the charts tell us what's cooking.
This entry was posted
on Sunday, August 20, 2006 at 7:58 PM.
