Today's action in the Q's (NASDAQ: QQQQ) neither confirmed a near-term peak nor confirmed that the action off of Monday's new multi-year high represents a bullish congestion pattern ahead of another upleg. But rest assured that this high-level "churn" is indicative of an approaching peak. Perhaps Friday's Employment Report will trigger one or the other resolutions to the current stand-off. Or, perhaps both: a spike to new highs, followed by a wicked downside reversal. All I can say at this point is that a very meaningful peak is approaching, and it could very well come in the aftermath of a "news spike" to new highs, which attracts all sorts of sellers, most of whom are all too aware what month of the year it is.



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.