Powershares Nasdaq 100 QQQ Trust (NYSE: QQQ) Nears Breakout
May 11, 2011
Shares of the ETF Powershares Nasdaq 100 QQQ Trust (NYSE: QQQ) are a small fraction from breaking out to new rally and new 2011 highs.
The Q’s never did correct as much as the S&P 500 Index (SPX) or small cap indexes such as the Russell 2000 Index (RUT). In last week’s selloff the Q’s only lost about 0.7%.
Last month the Q’s broke above a declining trend resistance line that pointed to higher highs ahead. Connecting the February 16 and April 4 highs and extending a line to the right on a daily chart creates the declining trend resistance line.
A decisive close above $59.22 in coming days would be a breakout and would forecast considerably higher highs in coming weeks.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Powershares Nasdaq 100 QQQ Trust.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.