Friday, December 01, 2006
Selling pressure in the broader market, which received some relief on Wednesday, once again returned yesterday. This puts the 4-month QQQQ trend in jeopardy.
On the intraday QQQQ chart above we have drawn out a potential scenario that may unfold if buyers don't return today. Longer term the picture remains bullish, but the immediate picture is starting to look fairly bearish here. Meanwhile, the oils and metals are in great shape. A strong correction on the broader market may ruffle these sectors temporarily, but any dips in the commodities should be considered buying opportunities.