I am not sure what to make of the hourly pattern that has been carved out by the Q's (QQQQ) since the September 4 high at 50.00 -- other than it exhibits a series of higher lows and lower highs that have formed a coil pattern. Such a coil-type pattern just off of a recent high usually resolves itself in a thrust to the upside in sympathy with, and to continue, the underlying dominant uptrend -- in this case, that originated at the August pivot low of 44.39. Be that as it may, ahead of the FOMC meeting, who knows what will happen during the next 2 1/2 hours today and throughout tomorrow's morning session? Purely from a technical perspective, as long as 48.60/25 contains any further weakness, the bullish-resolution scenario will remain intact.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.