Extreme VIX Readings Suggest Imminent Upturn

By Mike Paulenoff

Looking at the Q's (Nasdaq: QQQQ) from a near-term pattern and momentum perspective, the action during the past week could represent a double bottom in the making (around 29.30) or the conclusion of a significant downleg at yesterday's low (29.25) followed by the start of a potent recovery rally period. In either case, my work points higher to a minimum near-term target of 33.50 and then to test the Sep-Oct down trendline in the vicinity of 35.00/20. (11:55 am ET, $32.32).

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