Wednesday, December 27, 2006
Here is an hourly chart of the Nasdaq 100 Trust tracking stock (QQQQ).
The picture here is not quite as bullish as the picture in the S&P. Today's opening bar was a wide range bar with a close in the lower part of the bar. This indicates longer time frame trader selling. But the next (as yet incomplete) bar hints that there has been no follow through selling and this hint is empasized by the fact that today's early reaction stopped exactly on support at yesterday's high. This tells me that the buyers during the past hour or so are also longer time frame traders and that they are getting impatient because they are buying above yesterday's range.
All in all the picture here I think is a bullish one. I expect the QQQQ to rally to 44.70 over the next week or two. During the first quarter of 2007 I think we shall see a print in the 47-48 range.