September 21, 2011
Shares of the ETF Powershares Nasdaq 100 QQQ Trust (NYSE: QQQ) broke above its prior rally closing high of $55.06 (August 31) on September 14 by closing at $55.36. It has since made four straight additional closing highs.
The QQQ has also closed above both its 50-day moving average and its 200-day moving average. The S&P 500 Index (SPX) has yet to close above any of these resistance levels and the Russell 2000 Small Cap Index is also languishing below resistance.
The QQQ is either leading the stock market higher and the other indexes will soon break out, or the QQQ is misleading everyone.
A long position for the QQQ with a sell stop at just below $55.36 would be a low risk entry point for a potential rally ahead.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Powershares Nasdaq 100 QQQ Trust.