Powershares QQQ Trust (NASDAQ: QQQQ) Hits a Wall Says Market Timer Frank Kollar
June 23, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ)
reached a critical resistance level this week and promptly
reversed.
The $47.81 level is the 61.8% retracement for the entire
April to May decline. It needs to be surpassed in order
for the Q’s to make a run to their old highs, and
this level usually results in at least a period of selling.
How long the selling lasts is the big question though.
Will it be over in a day or two? Or do we have a new trend
to the downside ahead.
Until we have confirmation of a new trend, which we do
not have yet, the trend remains up. The likelihood of renewed
buying in coming days is high and another test of the $47.81
resistance level should be in the cards.
The second test, assuming it occurs, will be more important.
A second failure would result in a prolonged period of
selling.
But for now, we are still looking for higher highs ahead.
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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