Powershares QQQ
Trust (NASDAQ: QQQQ) Hits a Wall Says Market Timer Frank
Kollar
December 16, 2009 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ)
rallied to the $44.60 level in mid-November. After a month,
they have been unable to surpass these highs even after
several attempts.
The bullish side is that there have been two minor corrections
during this time-frame and the second correction ended
at a higher low. This creates a wedge shape pattern that
likely has predictive results when broken.
A lower low than the rising trend support line created
by drawing a line through the November 27 and December
9 lows would forecast lower lows for the next several days
to weeks.
A decisive close above $44.60, the horizontal resistance
line, would be a breakout for the Nasdaq 100 Q’s
and forecast a run to the next resistance level which is
all the way up at $48.64, the 78.6% retracement level for
the entire 2008-2009 bear market decline.
There is minor resistance at $45.78 which should be surpassed
if the Nasdaq 100 Q’s can break out. Two weeks ago
we looked at this level as a possible critical resistance
but as time goes by and the Nasdaq 100 Q’s hold near
their highs, we see a breakout as likely to blow past this
number and continue higher.
The Fibtimer.com (http://www.fibtimer.com)
Stock Timing Strategy holds 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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