(Go to http://www.financialwire.net/?s=kllrfby+cmmtry for more of Kollar’s commentaries.)

- Technical Market Commentary -

May 5, 2010 (FinancialWire) (By Frank Kollar) — Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) lost 3% on heavy volume on Tuesday, May 4 as U.S. and global markets sold off. What’s next for this volatile and widely traded ETF?

The Q’s stopped at a strong resistance level two weeks ago. This was at the bear market rally high of $50.61 reached on June 5, 2008. $50.61 turned the stock market and the Q’s lower then, and have done so again now.

The Q’s closed just above their 50-day moving average; a level watched by many traders as short term support.

Below this, should the Q’s continue lower, are support levels at $45.33 and then $44.57. This would exceed a 10% correction so if we are on the cusp of a normal 10% correction, we could see buyers come in before either of these supports are reached.

Disclosure: The Fibtimer.com Stock Timing Strategy holds a position in the Powershares QQQ Trust.

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