Pullback To Expected Low

As was mentioned in an earlier post, August 16 is an important low from last year. At this point it appears that the markets are consolidating the recent advance into that time period, which is bullish. The QQQQ 15ema has crossed up the 30ema, however, a little more consolidation or pullback would be nice before trying to go long (if not already long). The measured move (March low to June high) target from the July 15 low is 52.86. The Jan 08 high is 51.47. So it would be reasonable to expect a high around that price band. In elliott wave terms, such a high would represent intermediate wave (2) or (B) of the decline from the October 07 high. This means the meat of the decline is yet ahead of us, so don't overstay your welcome in this rally. The most likely time period for a high is around 9/4 to 9/9/08.

Using the same measure move method, we can now project the next low to be around 38.84 to 30.18 in the QQQQ unless the October 07 high is exceeded.