Stock Market Technical Analysis Blog
Click on image to enlarge
In the markets today we had excellent follow thru from Friday's closing hour setup giving us a huge rally this morning and much to the short's surprise they held the peak sideways for the rest of the day. I just have time to post one chart tonight and discuss it so the most important one by far is the QQQ.
The lower chart above is the daily chart of the QQQ and the upper chart has two hour bars. Looking at the lower chart first we see that today's close stopped at the junction of four major channel lines. It stopped at the upper line of the one year horizontal black line channel which is also the upper line of the 2 1/2 month uphill blue channel and is also the lower line of the 1 year orange uphill channel and also, the lower line of the uphill brown line channel.
Looking at the top chart above, the more focused in 120 minute bar view we see the QQQs trading the entire afternoon holding right at the junction of these four major channels. This is extremely rare to have a pivot at the intersection of four major channels. We are at a pivot point that could be very volatile, if not explosive here. This is it for the bears, if they can't break this down tomorrow they will end up getting squeezed out of their last dollars in very short order. The stakes are equally as high for the bulls, they have dressed this market up and driven it to the prom and the dance is ready to start. The PPT just cannot get cold feet now and decide they've done enough.
Alan
Please see risk disclaimer below
