Powershares QQQ Trust (NASDAQ: QQQQ)
Break Support Says Market Timer Frank Kollar
June 8, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ)
have broken below two important support levels.
On Monday, June 7, the Q’s closed at $44.27, well
below the 61.8% retracement of the entire February to April
advance at $44.57.
The Q’s also closed below its 200-day moving average,
currently at $44.79; a level many investors consider the
dividing line between a bull market and a bear market.
These broken support levels are likely pointing to further
declines ahead. The one hope is a reversal to the upside
on Tuesday, June 8. That would constitute a lack of follow-through
after Monday’s bearish break of support.
If we get the reversal on Tuesday with a close well above
these just broken support levels, there is a chance for
at least a short term rally considering the oversold market
conditions. If not, the Q’s may be headed for a test
of their February 5 lows at $42.12.
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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