Bearish Days Ahead for Powershares QQQ Trust (NASDAQ: QQQQ)
Says Market Timer Frank Kollar
August 24, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ)
are starting to add up a bunch of negative indicators,
forecasting lower lows in coming weeks.
On Monday, August 23, the Q’s rallied at the open
and then spent the rest of the day erasing the gains and
finally closing lower. The day was a bearish outside trend
continuation day. This indicator is triggered when there
are higher highs and lower lows than the preceding day’s
trading range and the close is also lower than the previous
day’s close.
Monday’s close, at $44.48, was at exactly the 50%
retracement of the July to early August rally.
The Q’s are now below its 50-day moving average
as well as its 200-day moving average.
The 50-day average has crossed below the 200-day average,
a bearish indicator.
The Q’s should decline to the 61.8% retracement
support level at $43.84 in coming days. How it does there
will likely determine its future near-term direction which
could easily see a test of the $42 correction lows if it
is broken.
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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