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As of now, QQQQ is showing data error, the intra high as 44.97. The actual high is 44.55.

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As noted, QQQQ traded to RST upper resistance and SPX traded to the upper TL.

Now, with the Eco news, market is rallying again as we know that markets use any news however it wants.

While price actions seem to be bullish, i.e. seasonal buying spree, the fundamental market condition is not.

Intra day shows negative divergences and on 60m.


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From: QQQQtrend Replying To : ki (post 7959) Dec 4 2006 1:18PM
Title: QQQQ RST on 60m

QQQQ RST on 60m


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From: QQQQtrend Replying To : QQQQtrend (post 96793) Dec 4 2006 10:00AM
Title: corr QQQQ Coil formation & SPX
SPX resistance at 1400 relative to Qs 44, but it is projected to make a new high to upper TL R.
QQQQ intra downtrend in tact, resistance at 44 and at 44.30 OE Pivot and last 4 days R.


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From: QQQQtrend Replying To : QQQQtrend (post 96746) Dec 4 2006 9:57AM
Title: QQQQ Coil formation


QQQQ intra downtrend in tact, resistance at 44 and at 40.30 OE Pivot and last 4 days R.




From: QQQQtrend Dec 1 2006 3:47PM

Qs intra bounce at the low as shown on 60m chart forming double intra bottom while SPX is forming "Coil" formation.
Qs shows intra P.D.

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From: QQQQtrend Replying To : QQQQtrend (post 96736) Nov 30 2006 10:23PM
Title: QQQQ & Market Comment


After softer economic news during PreMarket, markets traded down after the open, then found a support at an intra support as it bounced off during mid day as shown on intraday chart, for QQQQ 5m small rising wedge and a coil formation on 60m chart, recovering most of losses going into close, finishing the day unchanged. Market internal was fairly positive, A/D 1.80 and 1.14, since this would normally be a part of EOM action.

Bond market Treasury notes fell as 10yr closing at 4.46, the lowest level since Jan 06. Chicago purchasing mgt report was much weaker 49.9 vs 55 showing weak numbers across different categories. $USD again fell while Oil traded up which do not bode well for stock markets.

Home builders are upgraded today by BOA to neutral from cautious. As shown on HGX chart, it was trading up with "Price Channel" formation as it broke out of 2-wk consolidation, however, we need to see the final confirmation of breakout as it breaks above the upper channel TL. QQQQ As commented yesterday, it still didn't break above 44.20 area with confirmation which is the intra upper resistance. As stated above, it is forming a small rising wedge on 5m chart, hence, we need to look for a confirmation.

As anticipated, market is consolidating even though we saw an initial volatility on Monday setting up for a retracement which we are now seeing retracement of 61.80% of the Monday decline. My bias is to downside even though during the last four month, we saw the repetition of the same formation trading higher. However, be aware of many traders are projecting $SPX to make a new high from the Tuesday intra reversal.
Conclusion: We need to see a confirmation for directional bias since it remained in a tight range during the last three days.

Note) I signaled a buy at the Jun - July low, and now commented to take profit even though I do not have a ST top. Of course, for small investors/traders can exit markets anytime they want, big investors would have slowly exited their positions a while ago, as we can see through COT charts.








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NASDAQ is also supported by the breakout TL, however, NASDAQ leadership is increasingly narrowed during the last several months as I noted negative divergences. We have a few big cap stocks are taking NASDAQ to higher which is showing more risk to downside. GOOG and AAPL were the leaders with MSFT trading higher with VISTA release news as I commented that MSFT VISTA release will help NASDAQ a few months ago. Now we have the VISTA release news with now analysts upgrades that we saw a week ago. AAPL is also upgraded today, trying to push market to higher, however, when the fund managers decide to take profit, many will try to exit at the same time. That will cause a faster momentum to downside. From Jun-Jul 06 bottom, 20% profit is a fairly good return for ST trading.






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$SPX is showing strong momentum as it retraced 100% of Monday sell-off, however, it is showing negative divergences on 5/30m charts. Since Jun-Jul 06 bottom, it rallied about 20%, hence, taking profit will be a prudent decision even though I don't see a confirmation of a ST top. As we can see, we have increasingly negative divergences. It closed at 1400.