- Technical Market Commentary -

April 23, 2010 (FinancialWire) (By Frank Kollar) — Both the Nasdaq 100 Index (NDX) and its tracking ETF the Powershares QQQ Trust (NASDAQ: QQQQ) reversed from early day losses and closed at new 2010 highs.

When a stock, index or ETF is in an uptrend, but opens at a level lower than the preceding day, reverses and closes at a new high, it is called an outside bullish trend continuation day.

This is what occurred for the NDX, QQQQ as well as the small cap indexes on Thursday, April 22. The S&P 500 Index (SPX) came close but did not close at the new high.

Typically such bullish trading days result in higher highs in coming days and weeks. Considering the after-hours selling on Thursday after Amazon.com posted earning results that beat estimates but apparently did not beat investor’s hopes, Friday may be an exception.

But nevertheless this is a bullish indicator when the market declines but sellers are beaten back by buyers. Look for higher highs in coming weeks.

Our target for the NDX remains at 2055 and for the QQQQ at $50.61, the June 5, 2008 bear market rally highs.

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.

(Go to http://www.financialwire.net/?s=frank+kollar to see more commentaries by Frank Kollar; And Go to http://www.financialwire.net/2010/04/22/about-kollar/ for more about Mr. Kollar.)

Disclosure: The Fibtimer.com ETF Timing Strategy has a position in the Powershares QQQ Trust.

The FirstAlert(tm) “Money Index” is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ/AMEX 25 Most Actives and NYSE/NASDAQ/AMEX greatest Percentage Losers and 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. Today’s Money Index is posted in the FinancialWire(tm) reference section (at http://www.financialwire.net/2010/04/23/fa-index-8/). Go to http://www.financialwire.net/?s=%22%27Money+Index%27+Synopsis for all the most recent FirstAlert(tm) Money Index Synopses.

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