FirstAlert(tm) Daily 1/4/11: QQQ Trust Breaks Out

- Technical Market Commentary -

January 4, 2011 (FinancialWire) (By Frank Kollar) (Go to http://www.financialwire.net/?s=cmmtry for all recent commentaries.) — Shares of the Powershares QQQ Trust ETF (QQQQ – NASDAQ) have been moving higher for four months, but Monday, January 3rd’s breakout was a big one.

With Monday being the first trading day of 2011, and the first week of the New Year being watched closely for signs of market strength, the Q’s gapped-up at the open and closed above two resistance levels. The first was the Fib 127.2% resistance from the November correction. The second was extremely significant, breaking through rally high levels from October 31, 2007.

After both of those levels were surpassed, the Q’s reached the next resistance level, at $55.77, then pulled-back a bit at the close.

$55.77 is now the target for the current advance, with support is at $52.00 per share.

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(Go to http://www.financialwire.net/2010/05/01/about-kollar/ for more about Mr. Kollar, and go to http://www.financialwire.net/?s=kllrfby for more of Kollar’s commentaries.)

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Disclosure: Frank Kollar’s Fibtimer.com (http://www.fibtimer.com/) ETF Timing Strategy holds a position in the Powershares QQQ Trust.

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