So far the bulls have not run the Q's QQQQ) back to the highs. In fact, for the past three hours the Q's have been consolidating in a 25-cent range between 46.65 and 46.20, which has the look and the feel of a "Bear Flag" off the down pole from this morning’s new recovery high at 46.99. If that proves to be the case, then we should expect the Q’s to break down (probably into the end of today’s session) towards the lower channel support line at 46.05. By the way, a close beneath yesterday’s low at 46.43 will mean that today's action represents a key downside reversal spike, which at the very least should mean that near-term direction has reversed to down from up.



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.