Momentum vs. Resistance: Who Will Win?

22 Eki 2014

Tomorrow is a critical day for QQQ and other indices. QQQ will be approaching the top of a down trend at the same time as a major resistance level from the July 24th top. If it manages to break this level it then has to contend with the 50 day moving average. Currently the momentum looks to be in favor of continued upside. This major resistance may only serve to cause brief sideways movement before the rally continues. If it fails to break this resistance most likely the 94.30 support level will hold (greater than 50% chance at least). Overall I would say a continued upward may be slightly more likely since earnings haven't been too bad this quarter. Also stocks are still a ways from being overbought in this bounce. I would enter positions here with caution. I am continuing to hold long term long positions.