Q's Larger Picture Shows Bullish Form
04/10/2007
Monday April 9, 2007
By Mike Paulenoff MPTrader.com
Last Monday and Tuesday I made comments to our subscribers that depending on the outcome of the Persian Gulf (UK sailor) crisis, the Q's either would break out of their 4-day sideways coil to the upside (resolution of the crisis), or to the downside (in the event of continued stand-off or confrontation). Wednesday morning the UK hostages were freed, by which time the Q's already were climbing out of the coil pattern towards my next optimal target zone of 44.30. That rally extended right into yesterday's (Monday April 9) high at 44.81, which well exceeded the prior recovery rally peak at 44.53.
Although the Q's look and act relatively tired after 5 sessions of gains, my work also warns me that the larger rally pattern off of the March 5 low at 41.89 exhibits bullish form, which should alert me (us) to the fact that after the next pullback, the Q's will embark on another potent upleg that projects beyond the February highs at 45.55 to 46.20. My optimal target zone for the forthcoming pullback is 43.90/60.
Mike Paulenoff is author of the MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis on equity markets, futures, metals, currencies and Treasuries.
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