Powershares QQQ (NASDAQ: QQQQ) Support Fails Says Market Timer Frank Kollar
March 11, 2008 (FinancialWire) (By Frank Kollar)
The Nasdaq 100 Powershare QQQs (NASDAQ: QQQQ) broke below the intra-day lows reached on January 23 and closed below them on Monday, March 10.
The QQQs had already made a lower close but the selling of the last week has taken the QQQs down to the point of no return. The QQQs are now expected to test the first bear support levels at $38.61, about 6% below the Monday, March 10 close.
There is the potential for an escalation of selling in coming days as the S&P 500 Index also dips below those January 23 levels. Institutional selling could be brutal in coming days.
Should the QQQs close below $38.61, the next support level is all the way down at $34.18, a full 17% below current levels. Such a decline will not occur without considerable volatility in both directions, but is a very real possibility in coming weeks and months.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy may have a position in the Powershare QQQs.
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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