Thursday, November 8, 2012

QQQ (Nasdaq ETF) at 2-month channel support

NOV08 1039PST. Most indices, index ETFs, and financial futures are presently at or near significant channel support areas. After Barack Obama's re-election on Tuesday night, the markets have of course been selling off hard, and the present area might mark a low.

Below is a chart of the Powershares QQQ Trust (QQQ), i.e. the largest exchange-traded fund tracking the Nasdaq-100. A well-fitted, downward-sloping price channel encompasses all price action from September 17 to the present, save for an island-reversal day on Sept 26th.

Critically, price is currently right at channel support. Negative sentiment could always propel price lower still, setting up a relatively rare capitulation; that said, buyers do have a reason to step in here.

QQQ. Sept 17 to present. Hourly candles.