Mr_Nasdaq's Blog

[Mr_Nasdaq]

QQQQ - Tuesday's 5-Minute Chart...

The QQQQ rose in early trade to Tuesday's 8-member area of Gathering Resistance between $43.98 and $44.07. After printing a high of $44.00, Resistance was found and the QQQQ pulled back 30 cents to a subsequent low of $43.70.

Tuesday's 5-Minute Chart (below) shows that the QQQQ rose to its pivotal line ($44.00 on the nose) but could rise no farther.

On Wednesday, the QQQQ remains below the pivotal $44.00 line where the bears have the edge.

Also on Wednesday, Federal Reserve Chairman Ben Bernanke begins a two-day presentation of his economic outlook to the Senate Banking Committee. The QQQQ will be listening intently and moving up and down on his every word.

 

[Mr_Nasdaq]

QQQQ - Wednesday's 5-Minute Chart...

The QQQQ opened above the pivotal $44.00 line on Wednesday (where bulls have the edge). After testing Gathering Resistance between $44.07 and $44.15, it captured that Resistance at 10:00am, spurred by the first words out of Chairman Bernanke's mouth, 'Inflation is moderating'.

Having captured Wednesday's initial area of Gathering Resistance, the QQQQ rose to test the day's second area of Gathering Resistance between $44.69 and $44.72 where Resistance was finally found.

Wednesday's 5-Minute Chart (below) shows Gathering Resistance between $44.07 and $44.15 serving as such upon first approach. It also shows that when an area of Gathering Resistance is captured by a rising price and on heavy volume, it constitutes a warning to shorts and a 'Buy' Signal to boot.

On Thursday, the QQQQ is back above the pivotal $44.00 line where bulls have the edge within the 3-month old trading range.

The QQQQ is also testing Resistance at last week's high ($44.72) from which it pulled back dramatically last Friday.

Federal Reserve Chairman, Ben Bernanke, delivers Part 2 of his economic outlook to the Senate Banking Committee. The QQQQ will again be listening intently.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Thursday's 5-Minute Chart...

Having captured Resistance at last week's high ($44.72), the QQQQ rose to challenge its next individual aspect of Resistance at the 2006 High ($44.86).

Thursday's 5-Minute Chart (below) shows an early morning challenge to Resistance at the 2006 High. After printing a high of $44.84, Resistance was found and the QQQQ pulled back 24 cents to a subsequent low of $44.60.

A second challenge was staged in the afternoon. When all was said and done, the QQQQ had closed at $44.86 (Resistance at the 2006 High - on the nose).

On Friday, a capture of Resistance at the 2006 High ($44.86) opens the door to a test of Friday's 3-member area of Gathering Resistance...stay tuned.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Tuesday's 5-Minute Chart...

The QQQQ fell in morning trade to Tuesday's area of Gathering Support between $44.39 and $44.44. After printing a low of $44.43, Support was found and the QQQQ rallied $0.69 to a subsequent high of $45.12.

Tuesday's 5-Minute Chart (below) shows the rally from Gathering Support.

On Wednesday, the QQQQ is poised to test Resistance at its 2007 High ($45.40).

It will react throughout the day to the following three market-moving Economic Reports:

1) 8:30am - CPI Report
2) 10:00am - Leading Economic Indicators Report
3) 2:00pm - Minutes of the last FOMC Meeting

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Thursday's 5-Minute Chart...

The QQQQ rose in early trade to Thursday's area of Gathering Resistance between $45.40 and $45.46. After printing a high of $45.55, Resistance was found and the QQQQ pulled back $0.48 to a subsequent low of $45.07.

After finding Support at $45.07 (the Daily 'Pivot'), the QQQQ staged a remarkable rally in the last hour that pushed it all the way back to Gathering Resistance where it closed at $45.42.

'I pay myself as the market makes money available to me', is, therefore, a trading rule that served short sellers well on Thursday.

Thursday's 5-Minute Chart (below) shows the QQQQ rising to a double portion of Gathering Resistance from which it was obliged to pull back.

On Friday, the QQQQ faces an area of Gathering Resistance between $__.__ and $__.__

Each of the two individual aspects of Resistance that compose the area of Gathering Resistance comes from the Weekly Chart and, therefore, represents Resistance within the current week, on the last day of the week.

Any pull back that may occur will find Support at Friday's area of Gathering Support between $__.__ and $__.__

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

Buy at Gathering Support ... Sell at Gathering Res

Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance.

Knowing where these areas are located helps them to determine when to buy and when to sell.

^^^^^^^^^ Gathering Support ... Gathering Support ^^^^^^^^^^
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

 

[Mr_Nasdaq]

QQQQ - Monday's 5-Minute Chart...

A 7-cent area of Gathering Resistance between $45.48 and $45.55 was identified over the weekend in preparation for Monday's trade, and so it was found to be. After printing a high of $45.50, Resistance was found and the QQQQ pulled back $0.74 to a subsequent low of $44.76.

Monday's 5-Minute Chart (below) shows the QQQQ pulling back from Gathering Resistance and then, later in the day, bouncing from Gathering Support which stood at $44.86.

On Tuesday, the QQQQ may find itself back in the $45.00 range (it closed at $45.04).

It may also react to the 10:00am Consumer Confidence Report.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Tuesday's 5-Minute Chart...

The QQQQ reversed course on Tuesday with such gusto that it violated two significant areas of Gathering Support, leaving itself with significant chart damage, having violated both its 20-Day Moving Average and, more importantly, its 50-Day Moving Average.

Tuesday's 5-Minute Chart (Chart #1 below) shows the QQQQ violating two significant areas of Gathering Support and testing another important line of Support at $43.00.

On Wednesday, traders will be mindful that below the 50-Day Moving Average is 'Sell All Rallies' territory.

They will also be watching Support at $43.00 which was tested on Tuesday.

$43.00 represents Support at the December Low as well as Support at the 2006 Spring Peak. A violation of that Support opens the door to a test of Support at the November Low ($41.61).

The following Daily Chart (Chart #2 below) shows Support at $43.00 as well as the Support at the November Low.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

Chart #1

Chart #2

 

[Mr_Nasdaq]

QQQQ - Wednesday's 5-Minute Chart...

The QQQQ dipped in early trade to test Support at $43.00. After printing a low of $42.93, Support was found. The QQQQ rallied from there to a subsequent high of $43.76 on some encouraging words from Fed Chairman Ben Bernanke on the state of the economy.

Wednesday's 5-Minute Chart (Chart #1 below) shows the details of Support at $43.00 and Resistance at the 20-Week Moving Average.

On Thursday, the QQQQ is far from out of the woods.

Traders will continue to sell into all rallies, as is the custom below the 50-Day Moving Average. (The 20-Week Moving Average at $43.72 served as Resistance to Tuesday afternoon's rally as well as to Wednesday's rally.)

Traders will also continue to watch Support at $43.00 which was tested on Tuesday and again on Wednesday.

$43.00 represents Support at the December Low as well as Support at the 2006 Spring Peak. A violation of that Support opens the door to a test of Support at the November Low ($41.61).

The Daily Chart (Chart #2 below) shows Support at $43.00 as well as Support at the November Low:

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

Chart #1

Chart #2

 

[Mr_Nasdaq]

QQQQ - Thursday's 5-Minute Chart...

In chart work, peaks that form on the way up serve as Support on the way back down. The 2005 Peak at $42.23, therefore, served as Support to Thursday's early selloff. After printing a low of $42.24, Support was found and the QQQQ rallied $1.30 to a subsequent high of $43.54:
www.stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617

Thursday's 5-Minute Chart (below) shows the bounce from Support at the 2005 Peak.

On Friday, the QQQQ, having dropped so far so fast this week, may be entitled to some stability. It remains, however, below the 50-Day Moving Average which is viewed by traders as 'sell all rallies' territory.

$43.00, which was violated momentarily by Thursday's gap down, retains importance as Support at the December Low as well as Support at the 2006 Spring Peak. Any future violation of that Support, however, opens the door to a test of Support at the November Low ($41.61).

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Friday's 5-Minute Chart...

The QQQQ struggled on Friday to hold onto Support at its 2006 Spring Peak ($43.00) which had served as Support in December. Shortly after noon, however, it released its grip and dropped to a subsequent low of $42.47.

Friday's 5-Minute Chart (below) shows the battle that took place at $43.00 and the subsequent drop.

On Monday, the QQQQ, having closed at $42.48, is poised to give Support at its 2005 Peak ($42.23) another test.

If Support at that line fails, it opens the door to a test of Gathering Support between $__.__ and $__.__.

Interestingly, one of the members of that area of Gathering Support is ...

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Monday's 5-Minute Chart...

The QQQQ continued last week's decline on Monday by printing a new low for 2007 of $42.06:
www.stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617

Monday's 5-Minute Chart (below) shows the QQQQ starting and ending the day below long-term Support at its 2005 Peak ($42.23) which had served as Support last week.

On Tuesday, the QQQQ, having violated Support at its 2005 Peak ($42.23), is poised to test Support at its area of Gathering Support which includes as one of its members the _________.

The fact that Support at the ________ is joined by Support at the ________ to form an area of Gathering Support, increases the chances of Support and a bounce if the QQQQ falls that far.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Tuesday's 5-Minute Chart...

The QQQQ delivered an oversold bounce on Tuesday:
www.stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617

Tuesday's 5-Minute Chart (below) shows a gap up open followed by an afternoon march to Resistance at the 2006 Spring Peak.

On Wednesday, the QQQQ must capture Resistance at its 2006 Spring Peak ($43.00) if it is to continue its oversold bounce.

Beyond $43.00, it will meet with a 4-member area of Gathering Resistance between $__.__ and $__.__.

The composition of Wednesday's area of Gathering Resistance makes it a reasonable spot at which to close a long position and/or venture a short position.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Friday's 5-Minute Chart...

The QQQQ gaped up at Friday's open to penetrate Gathering Resistance between $43.33 and $43.42. After printing a high of $43.34, Resistance was found and the QQQQ fell $0.69 to a subsequent low of $42.65.

Friday's 5-Minute Chart (below) shows the QQQQ reaching Gathering Resistance and then declining sharply.

Monday marks the beginning of another Options Expiration Week which may add to the volatility that the QQQQ is already experiencing.

The 2006 Spring Peak at $43.00 has developed into a pivotal line. Above that line, therefore, the QQQQ may be viewed as demonstrating neutral to bullish behavior. Below that line represents neutral to bearish behavior.

Whenever the QQQQ finds itself above the $43.00 line, traders will remain mindful of two aspects of Resistance (in addition to those aspects listed in the nightly report):

1) ______________
2) ______________

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Monday's 5-Minute Chart...

The QQQQ rose on Monday. Volume, however, was extremely light, suggesting a lack of enthusiasm among buyers:
www.stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617

Monday's 5-Minute Chart (below) shows the details.

On Tuesday, if the QQQQ continues higher, it will meet with Gathering Resistance between $__.__ and $__.__

If Tuesday's initial area of Gathering Resistance is captured, its second area of Gathering Resistance between $__.__ and $__.__ will likely be the stopper.

Two aspects of Resistance for the QQQQ, in addition to those listed in the nightly report, have been incorporated into Tuesday's areas of Gathering Resistance. They represent _______. We need to watch them because the rest of the trading world is watching them, too:

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Tuesday's 5-Minute Chart...

The QQQQ, unable to add a penny to Monday's light volume rally, sold off instead, on heavy volume:
www.stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617

Tuesday's 5-Minute Chart (below) shows how a break down-and-out of a bearish Rising Wedge marked the beginning of the sell off and how failed Support at the 2006 Spring Peak at $43.00 accelerated the sell off.

On Wednesday, the QQQQ may test Support at its correction low ($42.06).

If Support at $42.06 fails, it will mark the beginning of the next leg down of the correction that began from a high of $45.55.

Wednesday's area of Gathering Support where Support and a bounce may occur stands between $__.__ and $__.__

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Wednesday's 5-Minute Chart...

The QQQQ moved lower on Wednesday to test Support at its correction low ($42.06). After printing a low of $42.10, Support was found from which the QQQQ rallied impressively into the close.

Wednesday's 5-Minute Chart (below) shows the test of Support at $42.06 and the subsequent rally.

On Thursday, the QQQQ, having closed at $42.99, has returned to its 2006 Spring Peak.

The 2006 Spring Peak ($43.00) has developed into a pivotal line to which the QQQQ constantly returns.

Above the 2006 Spring Peak, therefore, represents neutral to bullish territory for the QQQQ. Below the 2006 Spring Peak represents neutral to bearish territory..

The QQQQ will trade initially based on the 8:30am PPI Report. The PPI Report is a measurement of inflation and, therefore, is always a market-mover.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Thursday's 5-Minute Chart...

The QQQQ was denied a continuation of Wednesday's rally on Thursday by inflation pressures that were too hot as reported by the 8:30am PPI Report.

Thursday's 5-Minute Chart (below) shows a lackluster day in which the QQQQ consolidated Wednesday's gains below Resistance at the 2006 Spring Peak.

On Friday, the QQQQ will trade initially based on the 8:30am CPI Report. The CPI Report, like Thursday's PPI Report, is a measurement of inflation and, therefore, is always a market-mover.

The 2006 Spring Peak remains a pivotal line for the QQQQ. Above it represents neutral to bullish territory. Below it represents neutral to bearish territory.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Friday's 5-Minute Chart...

Friday's price action was similar to that of Thursday's in that the QQQQ continued to back-and-fill below Resistance at the 2006 Spring Peak ($43.00).

Friday's 5-Minute Chart (below) shows 3 days of Resistance at the 2006 Spring Peak.

On Monday, the 2006 Spring Peak continues to represent a pivotal line to which the QQQQ returns again and again. Above it, therefore, represents neutral to bullish territory. Below it represents neutral to bearish territory.

Monday's area of Gathering Resistance (Sell Alert) is between $__.__ and $__.__.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button:

 

[Mr_Nasdaq]

QQQQ - Monday's 5-Minute Chart...

The QQQQ rose on Monday to Gathering Resistance between $43.26 and $43.39. Resistance was found and the QQQQ pulled back $0.32 to a subsequent low of $43.07.

Monday's 5-Minute Chart (below) shows the morning rise to Gathering Resistance and the subsequent pull back.

On Tuesday:

1) The QQQQ is in neutral to bullish territory above its 2006 Spring Peak ($43.00).

2) It will trade initially based on the 8:30am Housing Starts Report.

3) The Fed begins a two-day meeting at 2:00pm that will culminate in Wednesday's 2:15pm interest rate announcement.

Tuesday's area of Gathering Resistance (Sell Alert) is between $__.__ and $__.__.

Each day's area of Gathering Support and Gathering Resistance is calculated the night before and may be loaded as 'Alerts' into the Medved QuoteTracker via QuoteTracker's 'Paste from Excel' Button: