Friday, December 03, 2010

NASDAQ - Upside Target

Stocks were up again today after opening in negative territory. As you can see in the above daily chart of the NASDAQ (QQQQ),  this ETF has broken out of a triangle formation and appears to be on its way to test its upside target. If you take the height of the triangle pattern and add it to the breakout level, you will arrive at an upside target of approximately 56.50 which is where I think the market is headed. 


Anonymous said...

Kevin, you've often pointed out in the past the basic concept of divergence. Your Q's chart shows what looks to be negative volume divergence on this breakout. Shouldn't the volume be rising with the price here to confirm that this is a breakout? It appears that buyers are not chasing this and that the breakout is not confirmed at this point. Care to correct or clarify this? TIA

Kevin said...

I'm not going to try and pick a top, especially during the month of December when stocks tend to rally. The chart patterns are bullish in my opinion.


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