Securities Research Services

Thursday, February 15, 2007

Bulls Remain in Charge of the Tape

Trading range watch continues. The QQQQ closed at the upper end of its range yesterday. With options expiration tomorrow, we doubt that it will make much more progress here, and expect that it will chop back toward its $44.00 max pain level.

Even so, the market is in great shape for a fresh leg higher. Look for the S&P and Dow to consolidate near current highs and look for the QQQQ to attempt a break out above $45 over the next week or so.

It remains to be seen whether or not a break out will succeed, but so far the probabilities remain in favor of the bull camp.

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