- Technical Commentary -

January 26, 2010 (FinancialWire) (By Frank Kollar) — Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) declined to strong support last Friday, January 22. Will this widely traded ETF now rally?

The Powershares QQQ reached the 50% retracement of the November 2009-January 2010 rally at the close last Friday. Typically this support level either slows a decline or results in a reversal day if the ETF is going to begin a new advance.

On the flip side, if shares move lower on Tuesday or break below $43.60, traders can look for continues declines to the $40.06 level.

This is the Fib 61.8% retracement support and it is critical to the rally. If shares close below $40.06, look for a full blown correction lasting several weeks at least.

Again, if shares reverse at $40.06, a new advance could begin.

Disclaimer: The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in the Powershares QQQ Trust.

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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