May 24, 2011
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) have broken below an important support level on Monday, May 23.
Since the correction lows reached on March 16, the Q’s had made three closing lows that, when connected by a line, indicated a strong support level that has held all declines since March.
On Monday, March 23, that line, called a rising trend support line, was decisively broken to the downside as the Q’s gapped lower and closed near their lows.
There is initial support at the prior correction lows, at $56.25, but this selloff has the potential to retest those March 16 lows.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Powershares QQQ Trust.