Bulls Have the Setup, Will They Take Advantage?

If you drill down to the 40-day, 2-hour view on the QQQQ an interesting development is revealed. The price pulled back to the 200-period average and bounced early around the 19th/20th of the month. This week the price has once again pulled back to this moving average and yesterday the price bounced once again, this time with strong bullish divergences on most major indicators. There is a line in the sand drawn for the bulls here. The QQQQ must not go below $40.77 or the index will most likely drag back down to $39.50. That said, the set up for the bulls is clear and with end of the month window dressing upon us, odds vastly favor a strong move higher starting today. Such a move higher will produce reliable buy set ups.