Pullback Or Reversal For Nasdaq-100 Trust (NASDAQ: QQQQ)? Asks Says Market Timer Frank Kollar.

September 7, 2006 (FinancialWire) (By Frank Kollar)

The exchange-traded fund Nasdaq-100 Trust (NASDAQ: QQQQ) dropped almost 2% on Wednesday. Does this signal a reversal and a new down leg? Or is it just profit-taking?

After a nasty correction lasting since early January 2006 sliced almost 18% off this volatile fund, the Nasdaq-100 Trust was finally on a roll. On Wednesday it lost badly enough for many analysts to question whether the advance could continue.

The chart has the answer. The Nasdaq-100 Trust briefly touched the 50% retracement level for the entire eight months correction on Tuesday. That is a strong resistance level and many traders sold with the expectation of a pullback.

The Nasdaq-100 Trust has several things going for it. It surpassed the Wave 4 highs (July 3 rd) that confirmed the rally. It sold right at an expected resistance level. It is still hugely oversold.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy is BULLISH on the QQQQs. Expect them to retest resistance in coming days and then break higher.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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