Wednesday, November 16, 2011

QQQ Waiting on a Breakout Move

Click on Chart to Enlarge

See the chart above for some notes. I think that this market is set up for a major move, most likely down from these levels. You don't often see a 7 reading on the daily ADX. That indicates a period of extreme trendlessness. Those periods can be followed by extremely sharp a large market moves. My belief from the overall context is that this next move will be down, and could be very large. The average bear market leg down is about 26% down. It is possible with such a low ADX that this leg could be larger.

1 comment: