Nasdaq 100 ETF (NASDAQ: QQQQ) Building Support Level Says Market Timer Frank Kollar
November 28, 2007 (FinancialWire) (By Frank Kollar)
Shares of the exchange traded fund Powershares Nasdaq 100 (NASDAQ: QQQQ) rose Tuesday after a huge sell-off pushed shares considerably lower on Monday. There appears to be a pennant formation developing on the chart.
The Q’s hit their lows back on November 12 th, only four days after being a fraction from new rally highs. Since that date, the Q’s have not reached lower lows while the rest of the stock market, and especially the S&P 500 Index, has continued to decline in dramatic fashion.
The charts show a pennant formation, inverted in this case, with the pennant bottom around the $49.20 level and with ever-lower daily highs marking the top of the pennant. This means there will be a break of either the top or bottom lines before much longer.
If the Q’s break higher, we could see a decent rally after the substantial declines in the market to date. A break to the downside would likely spell further selling and considerably lower lows in coming weeks.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy currently has a position in the QQQQs.
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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