Investing.com - Financial Markets Worldwide

Resistance Ahead For QQQ

Published 03/28/2012, 03:53 AM
Updated 07/09/2023, 06:31 AM
NDX
-1.21%

Shares of the ETF Powershares Nasdaq 100 QQQ Trust (NYSE: QQQ) seem to be in an unstoppable advance. But there are clouds ahead.

Looking back to the rally highs reached on October 31, 2007 and the correction lows reached on November 21, 2008, we can look ahead using Fibonacci resistance levels.

There is a long term resistance level at QQQ 73.62 which is the 161.8% retracement level. It could be used for profit taking by the many Fib traders out there. If they start selling, the move could escalate into a correction.
QQQ CHART
This still leaves another 7.7% of upside left for an already over extended rally. We could correct at any time, but if we make it that far look for sellers to take advantage of the resistance level.

Disclosure: Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market and the 2008-2009 bear market his bearish positions resulted in substantial gains, all achieved by trading trends.

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