Let's take a look at the hourly ProShares Ultra Short QQQQ (QID), currently at 54.06, which suggests to me that the price structure, though it failed to hurdle critical 4-month resistance at 56.00, has nonetheless ratcheted up during the past week into a new, higher plateau within its base-building pattern between 50.00 and 55.50 (roughly). As I see the pattern developing, the QID's should consolidate yesterday’s spike between 54.80 and 53.50 prior to the next attempt to break out to the upside. A sustained hurdle of 56.00 is needed to trigger upside acceleration towards 59-60.



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.