At this point it certainly looks as though this morning’s pre-open new high in the Nasdaq 100 Trust Shares (QQQQ) at 47.95 ended the upleg off of the June 13 low at 46.44, but right now not the upleg off of the June 8 low at 46.08. There is a subtle but huge difference in which of the uplegs is ending. If I am correct and just the June 13 upleg ended, then current weakness should find support between 47.50 and 47.25, prior to another thrust to new highs above 48. However, if the June 8 upleg has ended, then the 47.50/25 support area is unlikely to contain the decline, and the Q’s will be vulnerable to a much more significant bout of weakness that at the very least will test key intermediate-term support between 46.10 and 45.90, which if violated will signal that a meaningful peak is in place. So, based on my calculations, much could be at stake here during the upcoming hours.



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.