Friday, February 29, 2008

Ouch !

The Qs made considerable progress this past week, climbing off the 20DSMA and almost making it to the 200DSMA. Today's action however, completely reversed that gain. We'll look at some of the interesting nuances of Friday's intraday chart tomorrow within the context of the weekly update. Although volume was not particlularly high today, the virulence to the downside certainty was. When the NYAD opens at .13 you know the prospects for an up day are pretty low. . . and today's performance is about as low as it goes. Even with today's whack job, the Qs are not oversold however, so the next support level at 42.15 is looming. If that leg gets broken and we continue down through the February lows, and then to the January lows, the inverted current W pattern has a lot of air beneath it before the next support level . . . as I have mentioned in several previous weekly updates. . . which is around 36.

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