July 10, 2009 (FinancialWire) (By Frank Kollar) — The Nasdaq 100 ETF, Powershares QQQ Trust (NASDAQ: QQQQ), had a harrowing three-day selloff that may have ended on Wednesday.

The Qs dropped some 5% in trading from Friday to Tuesday. Enough to close lower than the previous selloff that ended June 23 and establish a possible new downtrend.

On Wednesday the Qs held with a slight gain after reaching new intra-day lows and on Thursday, they again finished with a gain.

This is not exactly bullish, but it does have several potentially bullish things going for it.

First, the lows on Wednesday reached the Fib 61.8% retracement of the May 13 to June 11 rally. This is a critical support level and one where reversals, if they are going to occur, typically take place.

Second, the lows create a corrective ABC pattern with Wave A on June 23, Wave B on July 1 and the July 8 lows being Wave C. The Wave C is at a logical support level as mentioned above.

This is not enough to say a rally is ahead, but it does point to a potential reversal and rally. A decisive close below $34.50 would dash these hopes and point to lower lows. Friday’s trading may very well be the turning point.

If we do move lower, initial strong support should be found around SPX 848 which is the 50-day moving average for this big cap index (for the SPY the 50-day moving is at about $85.00).

The http://www.fibtimer.com ETF Strategy has a position in the Powershares QQQ Trust.

The Investrend Economics Calendar lists Import/Export Prices for June (8:30 a.m.), International Trade for May (8:30 a.m.), U. of Michigan Consumer Sentiment Index for July (9:55 a.m.), Treasury Secretary Geithner speaks (10 a.m.).

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The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 36 advancers versus 14 decliners. Advancers were led by Financial Bear 3xnew (NYSE: FAZ) up 863.65%, Financial Bull 3xnew (NYSE: FAS) up 417.87%, Las Vegas Sands Corp (NYSE: LVS) up 11.28%, Huntington Bancshares Incorpora (NASDAQ: HBAN) up 7.94%, Micron Technology (NYSE: MU) up 6.78%. Decliners followed Amer Intl Group New (NYSE: AIG) down 27.63%, 3com Corporation (NASDAQ: COMS) down 8.51%, Emulex Corp (NYSE: ELX) down 7.84%.

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Today in History: William I of Orange was assassinated in his home in Delft, Holland by Balthasar Gérard in 1584. The United States took possession in 1821 of its newly bought territory of Florida from Spain. Wyoming was admitted in 1890 as the 44th U.S. state. Howard Hughes set a new record in 1938 by completing a 91-hour airplane flight around the world. Telstar, the world’s first communications satellite, was launched into orbit in 1962. New Zealand adopted decimal currency in 1967. At a Sotheby’s auction, Peter Paul Rubens’ painting The Massacre of the Innocents was sold in 2002 for £49.5million (US$76.2 million) to Lord Kenneth Thomson.

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