For detailed analysis, please see our blog post dated 7/20/14: www.syncubate.com/bl.../7/20/qqq-tug-of-war
A tug of war is in play here between the bulls and the bears.
This is now the second time since the beginning of July that the 20 Day MA has served as a support on a pullback.
Although Friday's trading action was no doubt bullish, -DMI is still poking its head up above +DMI, as noted by the red arrow on the chart, so the bears are still in the game.
If the 20 Day MA can't hold on any subsequent pullback, I would look for the 50 Day MA to hold next, possibly when it gets to around $93, which would also correspond to the end of June breakout level. The 50 Day MA is currently resting at $92.09.
A tug of war is in play here between the bulls and the bears.
This is now the second time since the beginning of July that the 20 Day MA has served as a support on a pullback.
Although Friday's trading action was no doubt bullish, -DMI is still poking its head up above +DMI, as noted by the red arrow on the chart, so the bears are still in the game.
If the 20 Day MA can't hold on any subsequent pullback, I would look for the 50 Day MA to hold next, possibly when it gets to around $93, which would also correspond to the end of June breakout level. The 50 Day MA is currently resting at $92.09.
