Whipsaw Action Continues

Qqqq200636
Just a quick update on the past week’s action in the Cubes (NASDAQ: QQQQ). As noted in my March 1 posting, the Cubes are exhibiting some whipsaw action. Twice in the past week they have broken above recent resistance around $41.50 (and the 50-day EMA) and twice they have been slapped back down, each time on clearly higher volume than was seen during the rally attempts (see purple highlights marked on the chart). What’s it mean? Yellow flag. Doesn’t mean it will necessarily go one way or the other, but action like this suggests to me an increased probability of “when it does break it will be a volatile break.” Cheers!

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