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July 24, 2009

Q's Poised to Thrust to New High Ground
by Mike Paulenoff

Despite the acutely negative earnings reactions in some big-cap technology names Thursday evening, the PowerShares QQQ Trust (Nasdaq: QQQQ) showed incredible resilience and relative strength throughout Friday's session.

Let's notice that including Friday's early weakness, the price structure of the entire upmove from the July 8 low at 34.30 exhibits a series of higher-highs and higher-lows. The most recent pullbac pivot low Friday morning at 38.70 appears to have completed a minor correction within the still dominant uptrend, which has resumed and is poised to thrust to new high ground.

My next upside projection is above 40.00, and only a decline that breaks 38.70 will begin to inflict initial technical damage.

Mike Paulenoff
www.mptrader.com

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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Copyright © 2007-2009 Mike Paulenoff

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