Thursday, December 07, 2006
The QQQQ may have made a lower high, which may not seem like a big deal. In trend analysis, however, one of the best tests of the strength of a trend is whether or not it continues to make higher highs. A lower high that appears is like a dead canary in a mine shaft. It's a warning that something isn't quite right. Potentially buyers can power out of this set up and move prices up over November's highs. But if the price rolls over here, look out below.