Pullback in Q's - Market Analysis for Aug 23rd, 2007

Let's notice that after marginally breaking above key resistance at 47.80-48, the Q's (NASDAQ: QQQQ) pivoted to the downside this morning (prior to testing the 62% recovery level at 48.25/30), and since have declined to test the minor support line at 47.20 created during the past week's action. Judging from both the micro pattern carved-out off of the 48.04 high and the juxtaposition of the hourly RSI momentum gauge, the Q's likely will break 47.20 on the way to 47.00-46.80 in the upcoming hours, at which time we will have to re-evaluate the composite technical picture to determine if a minor pullback is complete, or if additional correction is necessary.