- Technical Market Commentary -

June 23, 2010 (FinancialWire) (By Frank Kollar) (Go to http://www.financialwire.net/?s=cmmtry for all recent commentaries.) — Shares of the ETF Powershares QQQ Trust (QQQQ) reached a critical resistance level this week and promptly reversed. The $47.81 level is the 61.8% retracement for the entire April to May decline. It needs to be surpassed in order for the Q’s to make a run to their old highs, and this level usually results in at least a period of selling.

How long the selling lasts is the big question though. Will it be over in a day or two? Or do we have a new trend to the downside ahead.

Until we have confirmation of a new trend, which we do not have yet, the trend remains up. The likelihood of renewed buying in coming days is high and another test of the $47.81 resistance level should be in the cards.

The second test, assuming it occurs, will be more important. A second failure would result in a prolonged period of selling.

But for now, we are still looking for higher highs ahead.

(Go to http://www.financialwire.net/2010/05/01/about-kollar/ for more about Mr. Kollar, and go to http://www.financialwire.net/?s=kllrfby+cmmtry for more of Kollar’s commentaries.)

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

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