April 7, 2010
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) reached a strong resistance level that has held gains in check since March 25. On Tuesday, April 7, the Q’s pushed above this level in a breakout rally.
The resistance level was at the bear market rally high of $48.57 reached on August 15, 2008. $48.57 turned the stock market and the Q’s lower then, but on Tuesday, April 6, the Q’s broke above and closed well above $48.57.
There remains one additional resistance level at $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.
The Q’s are now 3.8% below this final strong resistance. 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) ETF Timing Strategy holds a position in the Powershares QQQ Trust.