So far the UltraShort QQQ ProShares (QID) ETF still cannot or have not hurdled key resistance at 48.70/75 to inflict any sort of damage to the still-dominant downtrend. The longer the index remains coiled below 48.75, the more likely it represents a bearish consolidation period, which when complete should resolve itself to the downside in a press to new lows. My sense is that if the QIDs fail to make a run at the upside prior to today’s last hour of trading, then the bears will take control and attempt to break the pattern in the direction of the underlying trend.



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