In our last
report, we mentioned that the bulls' failed attempt to push the QQQQ above
the resistance of its medium-term trendline caused many traders to question
the chance of another test of the $45.50 level. As you can see from the chart
below, we've added the Relative Strength Index because it has been creating a
series of new lows while the QQQQ has continued to move sideways. This
negative divergence is another technical sign of traders' lack of conviction
of a move higher. We'll continue to hold onto our short-term target near the
100 DMA until we get confirmation from other technical indicators that the
sideways momentum has ended.
Senior Analyst, ChartAdvisor
Previous Chart Alerts:
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