Abet Chichi2

[frenchee]

Here's my short-term forecast for QQQ. Would appreciate your comments where it is weak.

Current Position: 100% Cash--got stopped out @ 35.53 for a 2.45% loss from a short position.

Yesterday a long green candlestick formed. This shows prices advanced significantly from open to close during the day under strong buying pressure. When the candle appears during a breakout above a resistance area (the case yesterday), the long green candle adds credibility to the breakout. Volume and the Chaikin Oscillator confirmed the price move too.

QQQ closed above the upper Bollinger Band and is trading above its key moving averages. There are no divergences at the moment among the momentum/trading indicators I follow with price.

Next short-term resistance is at the 61.8% retracement level (36.45) from the high in Jan 04 until the low in Aug. Next price resistance is at 37.55. Support is at the bottom of yesterday's gap at 35.63. With next resistance being relatively close, I don't feel comfortable entering long at these levels and with price closing outside the upper Bollinger Band. However, if we do get a correction early next week and QQQ dips to 35.63, I'm going to go long as filling the gap is the norm and not the exception.

http://stockcharts.com/def/servlet/SC.web?c=QQQ,uu[w,a]declyiay[dc][pc20!h.02,.20!d20,2!c200!i!f][vc...