Tuesday, November 15, 2011

QQQ Squeeze

The QQQ is in a volatility squeeze with a long bias.  The most likely resolution is to the long side as the overall trend is up, the MACD histogram is trending up, and the DMI is positive.  

However, it looks like wave e of the triangle is still in progress with more downside toward last week's low expected tomorrow.  As long as last week's low holds, the market should breakout tomorrow or Thursday confirming the squeeze long signal by the end of the week.  These signals typically lead to an extended trend in the direction of the breakout.  Whichever way it goes, it looks like a big move is coming.

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