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Sunday, August 2, 2009

Weekly qqqq Wrap -up


My recent posts on the qqqq's explains why its an important index http://danericselliottwaves.blogspot.com/2009/07/qqqqs-and-great-asset-mania.html

I showed the daily and monthly yet not the weekly. So to fill in a missing key chart I present the weekly qqqq's. Erik http://erikmarketview.blogspot.com/ is often a big weekly guy (and also wanted some qqqq charts) and actually so am I. I think when weeklies show weakness, that's when the major turns will reveal themselves. As the saying goes: "weeklies trump dailys" and that is apt when trying to find turning points for major rallies or drops.

So whats the qqqq weekly show us? No negative divergence yet on the RSI. I suppose its not a "requirement" just something to note that if it does occur, then I think it will signal the beginning of the end for P2.

It also shows it was stopped perfectly at gap resistance last week in a spinning top type candle which indicates some short-term indecision. A pullback to near term support may be in the works. Its just a guess. I have lots of other notes on the charts so no need to repeat here I guess.

As I said before, I think the qqqq's are where a lot of "public participation" occurs in a spirited, sentiment-driven rally like this. So the bottom line is, when your best, most cash-rich secondary index cannot break through resistance, then that spells doom for all the markets.

And waning volume patterns seem to indicate to me that the qqqq's will not break on through mega-resistance in the coming weeks/month(s).
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