Powershares QQQ Trust (NASDAQ: QQQQ) Testing Critical Support Says Market Timer Frank Kollar

May 25, 2010 (FinancialWire) (By Frank Kollar)

Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) have reversed an early advance on Monday, May 24 and again closed lower as the correction continues to hammer stocks.

In last Thursday’s selloff, the Q’s closed just below a critical support level. This was the 61.8% retracement of the entire February to April advance, at $44.57.

This was not a decisive break of support as the Q’s closed at $44.35, only 22 cents lower. We look for a decisive close to consider a support level as broken. At least one percent lower or more.

Friday’s rally raised the Q’s comfortably above this support level. But in trading on Monday, May 24, the Q’s, which fought most of the day to stay positive, gave up the gains and again closed lower, this time at $44.66 a share.

The $44.57 support level, only 9 cents below, is again in danger of being broken.

Should the Q’s break this support, they could eventually test their February correction lows down at $42.12. This is 5.7% lower than Monday’s close.

The Fibtimer.com (http://www.fibtimer.com) ETF 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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