So much for a pullback, or will the pullback emerge in reaction to the FOMC? Let’s put it this way: I would be surprised if the Q’s (QQQQ) climb above 47.80 on a sustained basis without first entering a correction that could press into the 47.40/20 target support zone. If such a scenario unfolds, after the correction, I expect another potent upleg into the 48.25 area. Having said all of the above, I suspect that if the FOMC surprises us with a significant shift towards accommodation, then we might see a vertical lift-off without a correction.



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.