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.
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