You can not buy anything in the US for a nickel anymore. Oh, you’ve heard all the stories from your grandfather about how he bought a bowl of coffee for a nickel between walking back and forth to school barefoot and uphill both ways. But you cannot even get a piece of gum for 5 cents now.
But going into Wednesday, something really big can be had for less than a nickel. The all-time closing high price for the PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) is 177.88. That is just 3 cents above the Tuesday close. A move higher of just 4 cents to close at 117.89 would be a huge move for stocks.
The QQQ has not seen a new all-time high since March 2000. That is 16 and a half years. It is the last major index ETF to reach a new all-time high. All the major indexes have made new all-time highs including the Nasdaq 100, which the QQQ is modeled after. And so have the ETF’s based on the Dow, S&P 500 and Russell 2000. But not yet for the QQQ. Will it be Wednesday?
The stage is certainly set up for it. The chart above shows that the momentum indicators are bullish and improving. The RSI has turned up in the bullish zone and the MACD is now flat with a slight upward angle, after a pullback. And it remained positive through the pullback. The Bollinger Bands® have squeezed in and may be starting to open. This bodes of a continued move. And one started Thursday last week. Price bounced off of the lower Bollinger Band then and is now pushing the upper Band up. It is also pushing against short term resistance. A new all-time and continuation could be just the start of a major move. A Measured Move higher out of the consolidation would give a target to 132.
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