January 4, 2011
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) have been moving higher for four months, but Monday’s January 3 breakout was a big one.
Monday was the first day of 2011 and the first week of the New Year is being watched closely for signs of market strength.
The Q’s gapped up at the open and closed above two resistance levels. The first was the Fib 127.2% resistance from the November correction. The second is a big one; the rally high from back on October 31, 2007.
Both of these levels were surpassed. The Q’s reached the next resistance level at $55.77 and pulled back a bit at the close. This is now the target for this advance.
Support is at $52.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Powershares QQQ Trust.