Breakout for Nasdaq Powershares QQQ Trust (NASDAQ: QQQQ) Says Market Timer Frank Kollar

July 17, 2009 (FinancialWire) (By Frank Kollar)

The Nasdaq Composite and Nasdaq 100 index both broke out to new rally highs on Thursday, July 16. The Nasdaq 100 ETF, Powershares QQQ Trust (NASDAQ: QQQQ) also made new highs closing at $37.01.

There are several very bullish events supporting this breakout and predicting considerably higher highs.

On Monday, July 13, up volume on the NYSE was greater than down volume by a factor of 10 to 1. This is an event that seldom occurs. On Wednesday, the same volume surge again took place but this time it was 23 to 1. A huge buying surge and accompanied by substantially increasing volume.

Back in March we had several such volume surges followed by the March to June market rally.

The preceding June 12 to July 8 correction was a classic 3 wave decline that reached exactly to the 61.8% retracement of the May to June advance before reversing higher.

And of course, new highs are always bullish.

How high can we go? The Qs are currently just above their 50% retracement resistance level (also bullish). This forecasts a run to at least the 61.8% retracement level at $39.45. That is the target, but not necessarily to top, for the coming advance.

The http://www.fibtimer.com ETF Strategy has a position in the Powershares QQQ Trust.

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.

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.

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