Abet Chichi2

[frenchee]

QQQ: More Weakness Ahead

Looks like more weakness is ahead. The recent price action around the Bollinger Bands compared to the action of the RSI confirms a short position is the place to be. Prices recently peaked above the upper band on 6 Oct. This action was followed by a selloff and then another peak inside the bands on 21 Oct. The RSI has diverged from this price action with successive lower peaks, suggesting weakness ahead. A protective buy stop should be placed at 36.79. Confirming this selling opportunity is the Chaikin A/D oscillator which crossed from positive to negative territory last Friday. I feel good about this short because we have the first condition of a double top forming too. If QQQ will close decisively less than 35.43, then a double top will be in place for a move toward 34.50.

http://img7.imgspot.com/u/04/297/18/QQQdaily102204.jpg