We can see from the big picture of the Q's (QQQQ) that the price structure has just about completely traversed its 13-month price channel -- from its July 19 high at 50.66 into today's low at 46.53. The ability of the Q's to hold the 46.30 area (should the price structure press to new lows) is imperative if the lower channel support line is to maintain its integrity. Otherwise, the Q's will be heading for a confrontation with its sharply rising 200 DMA, now at 45.35. 

 

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.