Thursday, January 25, 2007 8:40:08 PM
QQQQ - Thursday's 5-Minute Chart...
The QQQQ closed back below the combination of its 50-Day Moving Average and the Middle of the 10-Week Trading Band on Thursday and did so on increasing volume.
Thursday's 5-Minute Chart (below) shows that the sell off in the QQQQ was stopped only by the day's area of Gathering Support between $43.58 and $43.60.
On Friday, the QQQQ is back in the dog-house below its 50-Day Moving Average ($44.00) and the Middle of the 10-Week Trading Band (also $44.00). That puts Wednesday's rally in the category of "giant head-fake". It also makes a test of Support at the lower end of the 2-month trading range ($43.00 - $42.52) more likely.
Rising interest rates are given the blame for Thursday's weakness. The Weekly Chart of the QQQQ (on display at my StockCharts.com web site) shows the relationship between long-term interest rates and the QQQQ (Comments regarding the relationship appear below the chart).
Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:
The QQQQ closed back below the combination of its 50-Day Moving Average and the Middle of the 10-Week Trading Band on Thursday and did so on increasing volume.
Thursday's 5-Minute Chart (below) shows that the sell off in the QQQQ was stopped only by the day's area of Gathering Support between $43.58 and $43.60.
On Friday, the QQQQ is back in the dog-house below its 50-Day Moving Average ($44.00) and the Middle of the 10-Week Trading Band (also $44.00). That puts Wednesday's rally in the category of "giant head-fake". It also makes a test of Support at the lower end of the 2-month trading range ($43.00 - $42.52) more likely.
Rising interest rates are given the blame for Thursday's weakness. The Weekly Chart of the QQQQ (on display at my StockCharts.com web site) shows the relationship between long-term interest rates and the QQQQ (Comments regarding the relationship appear below the chart).
Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:
Buy at Support
Sell at Resistance
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