The 5 period RSI for the Qs is near 0, and the McClellan Oscillator is approaching -200. Both of these indicators show a deepenening short term oversold condition. It may take the rest of May to retake the highs, but this correction should be nearing its conclusion.
Wednesday, May 13, 2009
As the above chart shows, the Qs have two lines of strong support - one is the parallel trend channel from the March low, and the other is the January and February highs. These levels should not be breached on a closing basis or the rally is over. I continue to suspect that the 50dema in blue will provide primary support and the these lower levels may not be reached.
Posted by R. Craig Pritchard at 5:31 PM