Volatility in the market has seen a sharp increase over the past several days as traders returned from the holiday season ready to start the new year. In our last report, we mentioned that the QQQQ looked like it was becoming exhausted in the short term and we beleive that we could still see a move toward the support of the 100-day moving average. As you can see from the chart below, the uptrend that was started in August is slowly consolidating toward the support of its longer-term moving averages, which could be regarded as the beginning of a bull flag pattern.