August 16, 2012 (By Frank Kollar)
The stock market may be in the dog days of summer, but shares of the ETF Powershares Nasdaq 100 QQQ Trust (NYSE: QQQ) are back at their prior April 27 rally highs.
If the QQQ Trust can make a decisive close above $67.24, it would likely lead to a test of the prior April 3 rally closing high at $68.23.
As have the rest of the major indexes, the QQQ Trust has been correcting since those April 3 highs, so a close above this level would be a breakout for the index, and would call technically for considerably higher highs ahead.
Chart Courtesy of StockCharts.com
The potential targets for a breakout rally are at $70.81, the 127.2% retracement resistance level and then $73.74, the 161.8% retracement resistance level.
The QQQ Trust closed on Wednesday at $67.22.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in the Powershares Nasdaq 100 QQQ Trust.
Disclosure: I am long QQQ.