The QQQQ dropped today in a counter trend selloff as suggested in yesterday’s comment. Actually, the Dow and S&P dropped a bit more percentage wise. I’ve included a chart with a different view than those posted yesterday. The candlestick yesterday showed a small bar with the open and close near the same, and the red mark under it appears on this chart when the bar registers the narrowest range of the last seven bars, or in this case, days. When the combination of a narrow range and this type of non-directional candle appears, the market often makes a large move. The yellow dots are simply the three day average of the floor pivots. I’ll explain these further in the indicators section in the next week or so. The indicator on the bottom of the chart is a simple one day momentum oscillator with a triple smoothing, plotted against a regression curve. The green and red dots on the basis line appear when the momentum changes direction on the side of the regression curve. The dot turned red as of yesterday’s close, which confirmed some of the comments of yesterday. However, the trend is still up and there has not been any divergence in this indicator. In other words new high was confirmed. There was a slight divergence in the CCI indicator shown on yesterday’s chart. The divergence I’m talking about was from two peaks in the CCI back, not the previous peak. But this was not a good divergence that I would call trend changing. I’m looking for this drop to be short lived, but as I indicated yesterday that it would be a counter trend scalp.