- Technical Market Commentary -

June 16, 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 made a technical breakout in trading on Tuesday, June 15. Since the mini-crash back in early May, the Q’s have had three intra-day lows that were higher than the previous low. Drawing a line through them creates a rising trend support line.

On June 3 the Q’s rallied to its 50-day moving average and the rally failed. On Tuesday, June 15, the Q’s rallied and closed above its 50-day moving average. The close, on heavy volume, was also above the close on June 3 as well as above the 50% retracement level for the entire April to May decline.

These bullish indicators, combined with the fourth NYSE breadth explosion day in four weeks (an indicator we follow in our Fibtimer reports) points to a substantial rally ahead for the Q’s, possibly a run to the prior highs at just over $50.00 a share.

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

The FirstAlert(tm) Economics Calendar lists Housing Starts & Building Permits for May (8:30 am ET); Producer Price Index for May (8:30 am ET); Industrial Production & Capacity Utilization for May (9:15 am ET); EIA Petroleum Inventories (10:30 am ET)

Word of the Day: festoon \fe-STOON\, verb: 1. To adorn with hanging chains or strands of any material. 2. Dentistry. To reproduce natural gum patterns around the teeth or a denture. noun: 1. A string or chain of flowers, foliage, ribbon, etc., suspended in a curve between two points. 2. A decorative representation of this, as in architectural work or on pottery. 3. A fabric suspended, draped, and bound at intervals to form graceful loops or scalloped folds. 4. Dentistry. The garlandlike area of the gums surrounding the necks of the teeth.

In context: “Its medium green leaves are perfect backdrops for the large orb-shaped white flowers blushed with pink that festoon the tree in May and June.” — Leslie Cox, "Leaf beetles don't give snowball a chance in …", Comox Valley Record

(A festoon is "a string or chain of flowers, foliage, ribbon, etc., suspended in a curve between two points." Modern usage has expanded the definition of the verb form to mean "to fill or cover", but dictionaries tend to maintain the narrower scope. Festoon derives from the Italian feston, "decoration for a feast.")

Quote of the Day: "If any of you cry at my funeral, I'll never speak to you again!" –Stan Laurel (06/16/1890 – 02/23/1965), English comic, actor.

Today is: Ladies’ Day (Baseball)

Happy Birthday: 1948 – V. Hanumantha Rao, Indian politician; 1958 – Jóhannes Helgason, Icelandic guitarist (Þeyr); 1963 – Scott Alexander, American screenwriter; 1974 – Paul Lee, British sculptor; 1980 – Phil Christophers, German rugby player; 1985 – Hamutal Ben-Yishai, Israeli Marine Biologist; 1989 – Elena Glebova, Estonian figure skater.

Today in History: 1858 – Abraham Lincoln delivers his House Divided speech in Springfield, Illinois; 1903 – The Ford Motor Company is incorporated; 1911 – A 772 gram stony meteorite strikes the earth near Kilbourn, Columbia County, Wisconsin damaging a barn; 1948 – The storming of the cockpit of the Miss Macao passenger seaplane, operated by a subsidiary of the Cathay Pacific Airways, marks the first aircraft hijacking of a commercial plane; 1963 – Soviet Space Program: Vostok 6 Mission – Cosmonaut Valentina Tereshkova becomes the first woman in space; 1977 – Oracle Corporation is incorporated in Redwood Shores, California, as Software Development Laboratories (SDL) by Larry Ellison, Bob Miner and Ed Oates.

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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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