Monday, October 22, 2012

QQQ Update-Q's look better on Tech rotation

As was suspected Friday Tech would show netter relative performance than Financials, as the Q's are Tech heavy and the SPX is more financial heavy, the relative performance between the two today makes sense.

All in all right now the Q's look excellent, I'm going to take a look and see if TFinancials are about to rotate or not, but this far this looks great.

 Just the fact there was no follow through on the downside in the NDX today is an achievement, the daily star candle put in so far has a bullish upside reversal bias to it.

 5 min ROC for the QQQ.

 Note the nice tight range in the QQQ today, I can't say it stays this tight, but it's a very nice range, volume has dropped off as it should and the Q's were able to put in some nice positive divergences today in this atmosphere.

 QQQ 1 min positive

 QQQ 3 min leading positive, this is quite large and most of the leading component came as the Q's entered the tighter range o today as compared to late Friday.

 The 10 min QQQ positive divergence is pretty impressive for this short amount of time.

We even have hints of a 15 min leading positive divergence in the Q's today alone.

I hope this illustrates the importance of consolidation and the range that comes with it.

No comments: