QQQQ update

Chart 1: Hourly chart. I think 3 was an extension followed by a wave 4 that tried repeatedly to break the 3's top but failed, thus making a triangle. 2 reasons for believing 3 was an extension:
1) 5 was an extension in the previous wave up (wave 5 of A Green) and thus we can say because of alternation 3 should extend here.
2) wave 3's top would lie above my fibonacci confluence zone, implying that 3 became overextended. So a lengthy wave 4 correction followed which will be followed by a short wave 5.
Notice also the grey boxes. On the left side the market moved sideways while the oscillator fell. Then the oscillator reversed as wave 5 came about but very quickly after that QQQQ fell nearly a dollar. A very similar set up has been created on the right hand side as during wave 4 the oscillator has fallen significantly, today (during wave 5) the oscillator reverses. If the oscillator reverses AGAIN, you can be pretty confident that there will be a pretty big move down (And that is when I get in!)

Chart 2:

Two important things:
1) If I am wrong about the original 45.57 target and we do not get a reversal soon, the next target is 46.64 - not only because it is the previous top, but also is an important fibonacci confluence zone on the weekly charts (not shown).
2) Notice the steady decline in volume during the ABC (Green) wave. This signifies an exhaustion in this up move.



-Wown
stockjockz.blogspot.com