First chart below shows the QID scenarios posted two weeks ago
today. Prices today are basically where they were back then with QID
still bouncing off that support (S1) level. Not by chance, that level
coincides with the 3030-3040 resistance level on the $COMPQ and the
1430-1440 level on the $SPX, both of which are also being challenged
today. As back then, if these levels are taken out then the alternative
scenario then becomes the primary scenario, as prices on QID are likely
to fall to the next support level (S2).
Something that jumped out at me when revisiting this chart today was
how any move down to the S2 level within this large bullish falling
wedge pattern on the QID would also set up a nice, symmetrical inverse
head and shoulders bottoming pattern. Symmetry is not absolutely
mandatory with H&S & IHS patterns but does add validity to the
pattern and increases the odds that it will play out.
The fact that the
neckline is slanted is perfectly normal with H&S and IHS patterns.
In this case, the neckline is the same as the upper trendline in the
falling wedge pattern, another reason to pay this level close attention
if QID were to approach it going forward. Original QID scenario (from
Dec 4th) followed by the updated QID daily charts showing both of the