March 31, 2010
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) reached a strong resistance level in intra-day trading Tuesday, March 30.
The intra-day high of $48.55 was only two cents shy of the bear market rally high of $48.57 reached on August 15, 2008. This level turned the stock market and the QQQQ lower then, it remains to be seen if it will do so again now.
Should we surpass this level in coming days, another more powerful resistance level awaits.
Only 4% above current levels, the QQQQ will reach $50.61 which was the bear market rally high reached on June 5, 2008. This was the high point reached in the most powerful bear market rally of 2008 and as such it marks another strong level of resistance.
Both of these may be tested in coming days or weeks. A close above $48.57 would forecast a run to the $50.61 level. A close above $50.61 would be extremely bullish, pointing to a potential test of the highs reached back in 2007.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in the Powershares QQQ Trust.