Tuesday, September 7, 2010

A Triangle On Intraday Chart

A clear triangle has formed on the intraday chart of the Qs. The same is not the case for the other indexes, which seem ready to rollover. A downside breakout of this triangle would not really be near term bearish as it could culminate in a 3 wave pullback to be followed by another move up above last week's high. We may see a pop higher in the Qs this afternoon or tomorrow before selling begins in earnest. It is often the case that the Qs are the last to top.

The disparity between the IWM and the Qs today is quite revealing. The IWM is currently down 1% vs 0.25% for the Qs.

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