The indices bounced off support provided by the right shoulder of the inverted head and shoulders pattern we noted on Monday. If the pattern holds true, we could be in for a few weeks of consolidation action as the QQQQ bounces between $37 and $38. Such consolidation will go a long way in healing some of the long term chart damage caused by the recent harsh pullback. The fact that selling in the general market has now subsided has caused some high flying stocks to resume their course. It is yet unclear how far buyers are willing to take them, but we suspect we may be in for some range trading over the next few weeks.
Wednesday, June 29, 2005
Support Found
The indices bounced off support provided by the right shoulder of the inverted head and shoulders pattern we noted on Monday. If the pattern holds true, we could be in for a few weeks of consolidation action as the QQQQ bounces between $37 and $38. Such consolidation will go a long way in healing some of the long term chart damage caused by the recent harsh pullback. The fact that selling in the general market has now subsided has caused some high flying stocks to resume their course. It is yet unclear how far buyers are willing to take them, but we suspect we may be in for some range trading over the next few weeks.
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