June 16, 2010
Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) have made a technical breakout in trading on Tuesday, June 15.
Since the mini-crash back in early May, the Q’s have had three intra-day lows that were higher than the previous low. Drawing a line through them creates a rising trend support line.
On June 3 the Q’s rallied to its 50-day moving average and the rally failed. On Tuesday, June 15, the Q’s rallied and closed above its 50-day moving average. The close, on heavy volume, was also above the close on June 3 as well as above the 50% retracement level for the entire April to May decline.
These bullish indicators, combined with the fourth NYSE breadth explosion day in four weeks (an indicator we follow in our Fibtimer reports) points to a substantial rally ahead for the Q’s, possibly a run to the prior highs at just over $50.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Powershares QQQ Trust.
Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in the Powershares QQQ Trust.