Wednesday, May 13, 2009

QQQQ Support

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.
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.


dave said...

"The likely period for a completion of a longer correction is between 5/15 & 5/22."

Craig, what was your choice of those dates based upon, please ?


dave said...

Yea though I walk through the Valley of the Shadow of Debt
I shall fear no default rates; for thou art with me
Thy printing presses and thy stress tests comfort me
Thou preparest a bull market for me in the presence of Roubini, Taleb, and Grant
Thou anointest my portfolio with liquidity; my wallet runneth over

Surely bonuses and bailouts shall follow me all the days of my life
And I will dwell in the house in Greenwich forever.

Author, author: Colin Negrych

Is the Valley of the Shadow of Debt west of the Hudson ?