The post Feb 27 recovery is still alive and kicking, although the Nasdaq 100 tracker QQQQ has just had a sharp rebuttal at a key resistance level, just as it describes in the manuals. There was a large gap created on Feb 26-27th, if you look closely at the chart. This is significant resistance that must be overcome before the advance can make further progress. Of course, to the non-chart orientated investor, this is stating the blindingly obvious. But to those who use charts to refine market tactics and define overall market strategy, these guidelines or pointers of how markets have behaved in the past in similar situations can be pretty helpful. At the very least, this chart shows a close to perfect example of a market rising rapidly to major resistance, then falling off at a rational level that one could at least have put odds on it occurring there, as opposed to an entirely random point on the chart. QQQQ, or the Q’s as they are known on the other side of the pond and in the dealing rooms in the City, are one of a small group of highly influential ETFs that one can do a lot worse and keep close tabs on. Others might include EEM (emerging markets), ISF (FTSE 100), SMH (semiconductors), EWJ (Japan), EFA (Global stocks), EWZ (Brazil), FXI (China) & GLD (Gold), as well as the biggest of them all, the SPY (S&P 500) tracker.

This entry was posted on Wednesday, April 11th, 2007 at 6:22 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.