Sunday, September 24, 2006 5:35:05 PM
QQQQ - Observations on Friday's Action and What It May Mean for Monday's Trade...
The following observations were sent to subscribers to the Support & Resistance Report along with Monday's areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) for the QQQQ and 70 other popularly traded Stocks, ETFs, Indexes and Funds.
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The QQQQ continued its pullback from Thursday morning's high on Friday, this time closing below key Support at its "200-Day Moving Average".
Friday's 5-Minute Chart shows the QQQQ violating its initial area of "Gathering Support" (the one that contained the "200-Day Moving Average"), thereby, issuing a warning to longs, but, finding Support at its second area of "Gathering Support" from which it bounced into the close:
On Monday, continued Resistance at the "200-Day Moving Average" would be an additional sign that the QQQQ may now be in the process of delivering that seasonal phenomenon known as the "October Low".
The Summer Rally, which ordinarily begins in July and ends in August, extended itself this year into the first 3 weeks of September. In one part of the country, that 3 week extension would be referred to as "postponing the future".
If the future is now unwilling to be postponed any longer and the QQQQ is now ready for its traditional decent into an October Low, then it is not a time to be brave on the long side. It is a time, instead, for areas of "Gathering Support" to provide Support only temporarily and for "back-side-bounces" to former areas of "Gathering Support" to be used as selling opportunities ("Gathering Support, when violated by a falling price, becomes Gathering Resistance".)
The following observations were sent to subscribers to the Support & Resistance Report along with Monday's areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) for the QQQQ and 70 other popularly traded Stocks, ETFs, Indexes and Funds.
**********************
The QQQQ continued its pullback from Thursday morning's high on Friday, this time closing below key Support at its "200-Day Moving Average".
Friday's 5-Minute Chart shows the QQQQ violating its initial area of "Gathering Support" (the one that contained the "200-Day Moving Average"), thereby, issuing a warning to longs, but, finding Support at its second area of "Gathering Support" from which it bounced into the close:
On Monday, continued Resistance at the "200-Day Moving Average" would be an additional sign that the QQQQ may now be in the process of delivering that seasonal phenomenon known as the "October Low".
The Summer Rally, which ordinarily begins in July and ends in August, extended itself this year into the first 3 weeks of September. In one part of the country, that 3 week extension would be referred to as "postponing the future".
If the future is now unwilling to be postponed any longer and the QQQQ is now ready for its traditional decent into an October Low, then it is not a time to be brave on the long side. It is a time, instead, for areas of "Gathering Support" to provide Support only temporarily and for "back-side-bounces" to former areas of "Gathering Support" to be used as selling opportunities ("Gathering Support, when violated by a falling price, becomes Gathering Resistance".)
Buy at Support
Sell at Resistance
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