This morning's strength in the Q's (QQQQ) propelled the price structure into a major resistance band between 47 and 47.90, as well as towards a confrontation with the July-August down trendline, now at 47.95. I think this will prove to be impenetrable in the absence either of a surprise cut in the Fed funds rate OR a pullback into the 46.50 area first. It is with that in mind that I hold a 50% short position in the Q's in our model portfolio against my other long positions as a "speculative" hedge (how's that for an oxymoronic phrase?) in 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.