Thursday, January 18, 2007 9:27:51 PM
QQQQ - Thursday's 5-Minute Chart...
The QQQQ sold off in dramatic fashion on Thursday when it opened below Support at its 2006 High and then proved unable to recapture that line.
Thursday's 5-Minute Chart (below) shows that a failed area of Gathering Support often constitutes a sell signal and that when an initial area of Gathering Support fails, it often leads to a test of the day's secondary area of Gathering Support.
On Friday, the QQQQ is back within the arms of its two-month trading range and testing another significant area of Gathering Support that includes as two of its members the 20-Day and 50-Day Moving Averages.
Failed Support here would represent an additional short-term negative for the QQQQ with the potential to turn into an intermediate-term negative (lasting weeks to months).
The QQQQ sold off in dramatic fashion on Thursday when it opened below Support at its 2006 High and then proved unable to recapture that line.
Thursday's 5-Minute Chart (below) shows that a failed area of Gathering Support often constitutes a sell signal and that when an initial area of Gathering Support fails, it often leads to a test of the day's secondary area of Gathering Support.
On Friday, the QQQQ is back within the arms of its two-month trading range and testing another significant area of Gathering Support that includes as two of its members the 20-Day and 50-Day Moving Averages.
Failed Support here would represent an additional short-term negative for the QQQQ with the potential to turn into an intermediate-term negative (lasting weeks to months).
Buy at Support
Sell at Resistance
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