- Market Analysis -

February 24, 2010 (FinancialWire) (By Frank Kollar) — Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) had a nice rally from their February 5 correction lows. But they have now reached and reversed from strong resistance.

Last Friday and again on Monday, Powershares QQQ reached the Fib 61.8% retracement level at $45.00 a share. On Monday the Q’s lost ground and on Tuesday they reversed hard.

This level is where most pullbacks start and it is being replicated on many charts including some of the major indexes. So Tuesday’s decline was expected, but the questions are; do we head lower from here and is this a bearish reversal? Or, is it just a one or two day temporary setback in an ongoing rally.

The Powershares QQQ may have more upside ahead but the ETF needs to regain and then close above $45.00 a share in coming days. If it does, we should see the Q’s run for their prior January highs.

Support is down at $42.62, about 5% below Tuesday’s close.

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. For 2008-2009, his strategy resulted in a 81.9% gain, 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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