Q's Heading Higher - Market Analysis for Apr 22nd, 2009

The daily chart on the PowerShares QQQ Trust (Nasdaq:  QQQQ) is scary because is so bullish – and represents a much more powerful pattern than the SPYs.  The reason that it is scary is because the Q’s are poised to confront the declining 200 DMA, now at 33.34, which is 3% above current prices.  However, my upside measured targets off of the huge base pattern are 35.20/40, and then 38.00.  The weakness earlier in the week in the Q’s tested and held critical intermediate-term support at 32.00-31.80 and since yesterday morning the price structure has turned up—and is accelerating towards a test of the 200 DMA (34.50 area).  Only a plunge that breaks 31.80 will wreck the near and intermediate-term bullish set-up.