- Technical Market Commentary -

June 8, 2010 (FinancialWire) (By Frank Kollar) (Go to http://www.financialwire.net/?s=cmmtry for all recent commentaries.) — Shares of the ETF Powershares QQQ Trust (NASDAQ: QQQQ) have broken below two important support levels.  On Monday, June 7, the Q’s closed at $44.27, well below the 61.8% retracement of the entire February to April advance at $44.57.  The Q’s also closed below its 200-day moving average, currently at $44.79; a level many investors consider the dividing line between a bull market and a bear market.

Those broken support levels are likely pointing to further declines ahead. The one hope is a reversal to the upside today. That would constitute a lack of follow-through after Monday’s bearish break of support.  If we get the reversal on Tuesday with a close well above these just broken support levels, there is a chance for at least a short term rally considering the oversold market conditions. If not, the Q’s may be headed for a test of their February 5 lows at $42.12.

(Go to http://www.financialwire.net/?s=frank+kollar to see more commentaries by Frank Kollar.)

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 24 to 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. Last session’s Most Actives showed 12 advancers versus 12 decliners. Last session’s Most Actives showed 5 advancers versus 20 decliners. Volume Leaders were led by Citigroup, Inc. (NYSE: C), the SPDRS S&P 500 Trust ETF (AMEX: SPY) and Bank of America Corp. (NYSE: BAC). The complete chart for today’s Money Index is accessible via Investrend’s dedicated Stock Smart NYSE-AMEX-NASDAQ Summary webpage (at http://www.investrend.com/fa-index-2010-06-07), and real-time, streaming research for all Money Index companies is available via the Investrend Research Syndicate (at http://www.investrend.stocksmart.com).

The FirstAlert(tm) Economics Calendar lists Weekly Chain Store Sales (8:55 am ET); Treasury auctions 3-year notes (1 pm ET).

The FirstAlert(tm) Events Calendar showcases BTE, VLO, PXD, CXO at the RBC Capital Markets Global Energy & Power Conference; CBST, SWS, VOLT, EAT at the Bank of America Merrill Lynch 2010 Small and Mid Cap Conference; DIN, IILG at the Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference; DOW, DD, MMM, WM at the JPMorgan Diversified Industries Conference; DPS Analyst Meeting; DSCM, WWWW, ADAM, GSIC at the Needham & Company Internet & Digital Media Conference; ENH, RNR, EIG, AGII at the Oppenheimer Insurance CEO Summit; HOLX, AUXL, SLXP, GILD at the Jefferies Global Life Sciences Conference; PVH, GES, COH, DECK at the Piper Jaffray Consumer Conference; SMED, VCI, TSYS, VRTU at the Noble Financial Equity Conference; V, QCOM, CSCO, MSFT at the UBS Global Technology and Services Conference.

Quote of the Day: "In order to compose, all you need to do is remember a tune that nobody else has thought of." –Robert Schumann (06/08/1810 – 07/29/1856), German composer.

Word of the Day: fathom \FATH-uhm\, verb: 1. To penetrate to the truth of; comprehend; understand. 2. To measure the depth of water by means of a sounding line; sound. noun: 1. A unit of length equal to six feet (1.8 meters): used chiefly in nautical measurements.

(Fathom starts its history meaning a "length of the outstretched arm" (a measure of about six feet). The verb sense comes into being approximately 1600.)

Today is: World Ocean Day

Happy Birthday: 1944 – Annie Haslam, English painter and singer; 1950 – Sonia Braga, Brazilian actress; 1982 – Nadia Petrova, Russian tennis player.

Today in History: 1949 – Celebrities Helen Keller, Dorothy Parker, Danny Kaye, Fredric March, John Garfield, Paul Muni and Edward G. Robinson are named in an FBI report as Communist Party members; 1968 – The body of assassinated U.S. Senator Robert F. Kennedy is laid to rest at Arlington National Cemetery; 1995 – The first release of the PHP programming language is released by Rasmus Lerdorf.

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Disclosure: Frank Kollar’s Fibtimer.com ETF Timing Strategy holds a position in the Powershares QQQ Trust.

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