The Nasdaq and the Dow Jones are currently consolidating after a strong Rally.

If you check the QQQQ and the DIA charts, you’ll see they both got a strong rally since the last post where I told you the Indexes just broke an important downtrend channel.

QQQQ:

As Expected the QQQQ got a major Rally after the breakout on the downtrend channel. After a great September, the QQQQ is now consolidating.

DIA:

The DIA is now testing the 50 days MA and the 110 level which is a solid support. A break down below 110 could bring a steeper correction while a break above 112 would be a bullish sign.