On Monday those who shorted too early were forced to cover, which added more upside. Yesterday we saw the upside extend in the morning, but later in the day short positions were put back on. We would not consider the put:call ratio to be overly bearish however.
Right now the QQQQ is trading very close to the upper end of its trading range. We expect to see a bit more upside here as it moves into resistance near its last high in the $45.50 area. The potential for a breakout at this point does not appear to be strong though. Price and volume just do not support a breakout move here and unless we can get some really great earnings in the next week or two, we should see this index bounce off resistance for the 5th time in so many months.
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