Top chart is the weekly 3 linear regression channel chart and the lower chart is the daily. The indicators at the bottom are the usual MACD 5,20,3, RSI3 and OBV.
On the weekly the Qs continue to oscillate between the mean and lower LR30 lines, with the latest engulfing bar offering some bullish encouragement. The RSI is turning up from an oversold condition and this also looks positive. The MACD on the other hand, remains downslope and we would want to see a reversal of that signal before getting frisky with the Qs.
The daily chart clearly shows the support at 49 that held through 11 days of selling. Now that the Qs are back above the lower LR30 channel line, all the daily indicators are in upslope sync for a continued rise. Friday's action, however, was NOT bullish and it remains to be seen if Dell's collapse, along with significant selldowns in Apple, Rimm and other NAZ100 big caps is the start of a new leg down.
I'm still cautious at this point, preferring to be 90% in cash and short OTM puts until a clearer trend develops and probabilities increase.