The Cubes have fallen to within a hair of our 135.86 target, recording their intraday low on Monday at 135.80. Ordinarily, this Hidden Pivot support would have been worth bottom-fishing. However, due to the interruption of the July Fourth holiday, we’re probably better off taking a pass this time just for the sake of caution. Besides, the low slightly breached May 18’s 135.87 bottom, generating a bearish impulse leg on the hourly chart. This can be a subtle sign of weakness to come, but in any event it should open our minds to the possibility that the next rally will be corrective rather than impulsive. To put it another way, QQQ may need to take another leg down, perhaps after a short rally in the days ahead, before it can muster a running start for a rally to new all-time highs. There is also a small possibility that June 9’s 143.90 peak could prove to be the elusive Mother of All Tops._______ UPDATE (Jul 5, 7:25 p.m.): The Cubes got a bounce today, but they will need to exceed the 139.08 midpoint pivot to start looking meaningful. At that point we would shift our attention to a rally target at 143.83 (60-minute, A=135.87 on 5/18). ______ UPDATE (Jul 6, 10:14 p.m.): Bulls went nowhere Thursday, but they need only rally this vehicle to 137.91 to go mildly on the offensive. A close above 138.43 would be doubly bullish.
