The Sunny Side of the Street
"From an intraday trading perspective, which by its very nature is different that the investor or long-term traders perspective, tomorrow should be another upward day as the QQQ continues its run upward toward 28.39. When it hits that area, I will look to stand aside until the market either breaks above the box, or shows me it wants to descend."
Today's market was essentially that: an attempt to make another run up, followed by failure, fear and profit taking.
Figure 1-- Intraday chart of the Dow
Technically the market stance has not changed from yesterday, or the day before that, or the day before that. It is a grinding, intraday process much like laying bricks, to make each step, one by one on the way toward the boundary of the yellow box, at which level we should see serious retracement.
Will it be a sharp downfall, from which heavy shorting would profit? I doubt it. As I said, this market is like laying bricks one at a time--to make a very large wall. The wall is the sideways pattern inside the yellow box, which has been in formation for more than xx now.
Figure 2-- Intraday QQQs
Figure 3-- QQQ Daily inside the yellow box
In fact, if you'll take a look at the daily bar for today, inside the boundaries of the yellow box in Figure 3, you will see that today's bar just looks like yesterday's bar, but upside down. Again, you can see that technically it is just another brush stroke on the currently existing pattern.
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