The Nasdaq indices continue to lead the market (technology issues), but I would feel a heck of a lot better if the other indices showed more strength to the upside. Let's take a look at the Q's.
Last week’s pivot low at 42.52 certainly looks and feels as though the Q's ended a correction (from the 11/24 high at 44.86) and started a new upleg within the larger uptrend off the July lows. Although the action during the last four sessions has amounted to a range trade (44.20-43.70), the entirety of the post-1/03 upmove views the sideways action as a bullish consolidation period prior to a resolution to the upside that will propel the Q's to test and hurdle the Nov-Dec high at 44.86/84.
Only a break below 43.50 will weaken the bullish scenario, while a break of 42.52 will be outright negative.
Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.
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