Powershares QQQ Trust (NASDAQ: QQQQ)
Reverses from Resistance Says Market Timer Frank Kollar
July 22, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ)
reversed from important resistance on Wednesday, July 22.
Last week the Q’s reached $45.81 intra-day before
reversing and heading lower. The Q’s stopped at $43.86
on Tuesday, July 20 and reversed to the upside. Tuesday
was a bullish outside reversal day for the Q’s though
the decline they ended was not a strong one.
On Wednesday, July 22 the Q’s quickly rallied to
$45.76, just five cents below the high reached last week
and that was it for the rally. By the close the Q’s
had shed almost 1.5% and closed at $44.64.
It appears that there is a line in the sand at $45.81.
There is also support at $43.86. A close below $43.86 in
the next few days would likely result in further declines
to test the $42.00 level.
A close above $45.81 would erase Wednesday’s Bernanke
inspired selloff and launch the Q’s for a retest
of the $47.00 level.
Whichever way this goes, the daily volatility is high
and any trades are risky. There is no definitive trend
but there is a bias to the downside.
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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but there is no guarantee that future results will be profitable. |
