Cube's back as QQQ and Google reestablish bullish potential

The "cubes" are back! so use QQQ again, not the QQQQ anymore, for your ETF tracking the Nasdaq 100 index ($NDX). The change back to QQQ happened March 23, just as the market reestablished bullish potential with the push up. Some components look quite good, and check out Google ($GOOG) below (bottom chart). First I show the QQQ hourly chart on which the candles moved above the 200-hour MA (moving average). Then Friday afternoon saw a retest of that level. Sure, it could drop below that again, along with a pullback from the 50-day MA indicated on the QQQ daily chart (middle chart below). But there's reason to see this bullishly positioned, so KI$$ position swing traders should be positioning long with a stop loss just under the lows of the prior week. Notice that Google ($GOOG) bounced from its 200-day MA test. That makes it a classic bullish long play.

Around the holidays I featured charts on Google showing that it should be a great long-term position that may double as its next big move. I also explained then that it would most likely rise and fall first, and we should really buy that dip. Guess what? It's time now! Because that scenario did play out perfectly. The buy signal for Google as it bounced from its 200-day MA also helps cast the QQQ, Nasdaq and even broader indices in a favorable light.

We may not always know at the buy-signal time exactly what fundamental reason will turn out to provide the rationale for the next big leg up. But we can read charts. And they're saying that these markets are ready for the bulls to show what they can do.