Monday, December 7, 2009
QQQQ Squeeze Setup
The 20 period 2 SD Bollinger Bands have moved inside of the 20 period 1.5 ATR Keltner Channels setting up a volatility squeeze for the Qs. Typically one would expect the breakout from such a setup to lead to a sizeable move in the direction of the prevailing momentum which is currently negative. The previous squeeze setup was followed by an upside breakout after the momentum turned positive. It remains to be seen which way this one will go, but you probably know by now that I am leaning to the downside.
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