- Technical Market Commentary -

January 20, 2011 (FinancialWire) (By Frank Kollar) (Go to http://www.financialwire.net/?s=cmmtry for all recent commentaries.) — In yesterday’s trading, the PowerShares QQQ Trust (QQQQ – NASDAQ) reached both a higher intra-day high and a lower intra-day low than the previous day’s session, then ended the day closing near its intra-day low. Such a trading pattern is considered a “bearish outside reversal,” and typically such trading days are followed with more losses.

The stock market, and certainly the QQQ Trust, has been moving higher with almost no let-up for two months. The Nasdaq 100 Index (^IQX) is very overbought, and has been due for a correction. And this may be the start of that correction.

The Q’s has strong support at the $55.03 level, which was the high reached back on October 31, 2007. A decisive close below that level would point to this being the beginning of a corrective period that would probably continue for several weeks. If we instead see a reversal to the upside, at or above $55.03 per share, that would signal a likely resumption of the rally.

The FirstAlert(tm) “Money Index” is an indicator of the depth of market direction or indirection. While not always including the same stocks, the combined NYSE, AMEX and NASDAQ 25 most actives and combined NYSE, AMEX and NASDAQ greatest percentage losers and greatest percentage winners (weighted against pure monetary loss/gain) indicate the direction in which the mass of money is flowing, as well as the general focus of the market. Go to http://www.financialwire.net/?s=frstlrtmnydx for today’s NYSE-AMEX-NASDAQ summaries.

The FirstAlert(tm) Morning Digest lists economics calendar events, earnings announcements, financial community conferences, company presentations and more. Go to http://www.financialwire.net/?s=frstlrtrlts+rngsgnrrngs for all the most recent FirstAlert(tm) Digest summaries.

Exchange Links: PowerShares QQQ Trust (QQQQ – NASDAQ)

(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.)

==========

**FirstAlert(tm) is underwritten by Investrend Communications. Today’s Investrend featured partner is Marshal Shichtman & Associates, P.C. –  Mr. Marshal Shichtman has served as council for Investrend Communications in various capacities since 2001. Mr. Shichtman is now collaborating with Investrend to provide a unique independent equity research product, which includes a specialized component particularly focused on assistance in best practices, filings, reporting and good governance. Go to http://www.investrend.com/shichtman for more information and a preferred introduction to Mr. Shichtman.

==========

FirstAlert(tm), published exclusively by FinancialWire(tm), was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information. The opinions expressed in FirstAlert(tm) do not necessarily reflect the opinions of Investrend or of FinancialWire(tm).

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Real-time, streaming research for companies and funds mentioned in FinancialWire(tm) news is available via the Investrend Research Syndicate, courtesy of Stock Smart (at http://investrend.stocksmart.com). Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” webpage (at http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website at http://www.financialwire.net/disclosures.php and http://www.financialwire.net/2010/04/23/safe-harbor/). Additional resources for investors are also accessible via the FinancialWire(tm) website (at http://www.financialwire.net/2010/04/23/investor-resources/). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

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

=========

All of FinancialWire(tm)’s daily news offering is accessible via the FinancialWire(tm) website (at http://www.financialwire.net/). In addition, some premium content — normally available to subscribers only — is now being posted in its entirety, courtesy of Investrend Syndications (at http://www.investrend.com).

=========

Copyright © MMX, FinancialWire(tm); All rights reserved.

[ftrdnwswnd] [ssryrsyr] [frstlrtrlts] [frstlrtdlycmmt] [kllrfby] [cmmtry] [mrktqr] [tchnlf] [anlytcl] [exctrdfnd]

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.