Purely from a pattern perspective, my work argues that there should be little doubt that the Q's (Nasdaq: QQQQ) are in the midst of a meaningful correction of the upmove from the 12/29 low at 28.47 to the 1/06 high at 31.63. Today's downside breach of yest.'s intraday low at 30.08 coupled with the form of the decline from this AM's pre-market rally high at 30.90 indicates strongly that the Q's have ended a... secondary downleg off of the 1/06 high (31.63), which should press prices towards a test of key support along the Nov.-Jan. trendline, now at 29.65. If the trendline is broken and sustained, then additional weakness should be forthcoming that projects into the 28.00 target zone. Only a rally that hurdles and sustains above 30.80/90 will neutralize my currently negative near term outlook.
