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Technical Analysis: The Weekly View.

Associate the comments below with http://stockcharts.com/def/servlet/SC.web?c=QQQ,uu[w,a]wiclyiay[de][pb20!d20,2!i!a33.68!a31.92!a31.6...

The Weekly Slow Stochastic Oscillator. Salient points: 1) Deeply oversold; 2) Downward momentum starting to abate as the oscillator and its signal line (dash line) are converging. This configuration implies we are in a presignal area for a buy. A buy signal for this oscillator will occur when it turns up. Don't have to wait for the oscillator and the signal lines to cross because of the deeply oversold reading outside the lower Bollinger Band. Compare buy signals of this indicator with price action--it has been reliable and profitable.

The Chaikin Money Flow Indicator. The main attribute here is the loss of money flow is decelerating as a trend the last four weeks. This fact hints that distribution is slowing down.

QQQ Price Chart. This chart shows a weekly open and close outside the lower Bollinger Band. With the Chaikin Money Flow not confirming price action this week, we have a Bollinger Band buy signal. If the Chaikin Money Flow indicator had a new low with the new price low this last week, it would suggest a continuation of the down trend. That's not the case now. As a result, the upside target relative to the regression to the mean is the middle Bollinger Band or the 15 week simple moving average of price now around 35.

Raff Regression Line resistance is at 33.68 and support is at 31.92 for next week.

Price the last four weeks are down while volume is declining. This suggests long positions being forced to liquidate; downtrend will end as all sellers sell their positions.

The next significant Fibonacci support level is at the 38.2% retracement level or 31.60

Putting all this together points out the intermediate-term trend is still down. QQQ's downward momentum seems to be lessening, however, as signs are pointing toward a retracement of the intermediate-term trend. Key support should be between 31.60 and 31.92.