May 19, 2009 (FinancialWire) (By Frank Kollar) — What happened to the correction? Shares of the Powershares Nasdaq 100 ETF (NASDAQ: QQQQ) rallied some 2.5% on Monday, May 18, as the stock market correction reversed.

The Qs erased half of the past week’s losses in a single day. Is the correction over? The answer lies in the support and resistance levels created by this abbreviated one week decline.

The highs reached in the March-May rally were at $35.05 while the lows reached last week were just a fraction below $33.00 a share. This makes a tight range and also gives us support and resistance levels that will tell us which way the market is headed.

A close above $35.05 would likely result in a continuation of the rally while a close below $33.00 a share would probably result in considerably lower lows in coming weeks.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Powershares Nasdaq 100 ETF.

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, his bearish positions resulted in gains exceeding 100 percent, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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