Wednesday, May 6, 2009

QQQQ possible reversal pattern for downside as its next move, with 35.19 as resistance - technical analysis view

Below is a comment I posted at my UBTNB3 site a few minutes ago. It is based on several technical analysis factors we have been tracking here for the daily charts of the Nasdaq 100 (NDX) and the ETF for that, the QQQQ's. Based on Elliott Wave analysis as applied to the intraday chart, the price symmetry of the waves up today can be a zigzag wave 2 (or wave b). The implication is that this can be a reversal pattern to point the QQQQ's downward, at least for the next move over the coming few days (maybe longer, depending on one's view of the larger chart pattern). This view will be negated however, if the QQQQ's are able to move above $35.19.

Here's what I posted:
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Risk for QQQQ, was the 3-wave move up an ABC where C=A? looks almost exactly symmetrical in price. If so, risk is that it might be small wave 2 pullback and then the trend is down (at least in near term time frame).

QQQQ needs back above 35.185 to negate this possibility.

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