TECHNICALS -QQQQ

The markets end the day as I suspected, near the highs with market internals very strong as there were 3,500 more winners than losers. The best sectors today were oils, internets, homies, trannies and biotechs with the banks and consumers lagging but still higher.

Dave Landry at tradingmarkets.com calls himself a trend following moron because he likes to trade pullups and pullbacks into the prevailing trend. The trend of the QQQQ is hard to miss and with today's pullup shorting seems to be the high probability trade. Note that today's high is lower than last Wednesdays high and the pattern of lower highs and lower lows dominates the chart. The bounce in the semis today also seems subpar so another feather in the cap of those wanting to short the tech/semi heavy NAZ.