Fannie and Freddie bailout fail to inspire large tech

The big news surrounding Fannie and Freddie failed to inspire a weak QQQQ, finishing today's session down 0.14. While we always must be on the lookout for a potentially violent short squeeze, September has the feel of being particularly ugly for the broader stock indices at this point. We believe the housing problem in the US has a LONG way to go before washing out, with further credit and consumer spending pressure to come.

selling resumes

Monday saw a resumption of selling, after a week of choppy sessions that failed to deliver any real upside.  We believe this negative sentiment in the QQQQ should set the trend for coming sessions.

More earnings damage after the bell

After several important earnings misses / lowered outlooks from companies last week, we have had several more tonight, with Schering Plough, Merck, American Express, and specifically for those interested in the QQQQ,  Sandisk and Apple.  The QQQQ is already selling off over 1% after the bell tonight and should lead to weakness in the coming sessions.  We feel that there is a good potential for accelerated selling pressure in the near future.

Heavy selling

It is rare that a 4% move occurs in one day in the QQQQ, but this happened Thursday in heavy waves of selling.  Friday's open was pointing to some calm, but selling has resumed as we write this (9.46 am EST) and the index is down 25 cents.  There doesn't appear to be a bottom nearby for support.

New weakness trend in Nasdaq 100?

Although it took a while to play out, June seems to be marking the QQQQ for weakness ahead.  The index is having trouble getting any footing, and our model indicators are pointing to further problems in the index.

Monday reversal

Monday began with a continuation to the upswing seen last week in the QQQQ, but reversed during the session.  We think this will likely set a bearish tone for the rest of the week in the QQQQ.

Current topping process?

The current 'cosolidation' in the QQQQ on Friday and Monday's session could mark an important top.  Having been on a surge for several weeks, the QQQQ has outperformed the S&P aggressively recently and seems prime for a pullback.