The action in the PowerShares QQQ Trust (QQQQ) is not exactly ripping the cover off the ball in the aftermath of Friday’s sharp, late-session upside recovery from 42.12 to 43.02. That said, the hourly chart pattern and momentum work still argue for additional strength that should confront the January-February resistance line, now at 43.50. Inability of the QQQQ to claw their way towards the vicinity of the down trendline, followed by a decline that breaks 42.64, will point to a retest of Friday’s low.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.