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QQQQ Resuming Upleg
The PowerShares QQQ Trust (Nasdaq: QQQQ) hit a recovery high at 40.76 on Tuesday (Aug 25) along with the SPDRs (AMEX: SPY). The pullback from 40.76 to today’s low at 39.67 appears to have completed a minor correction of the upmove from the Aug 17 low at 38.46 to the Aug 25 high at 40.76. If that proves to be accurate, then the Q’s have just embarked on another upleg that should hurdle 40.76 into new high ground projected into the 41.30/60 area next. Only a decline that breaks today’s low at 39.67 will begin to compromise the overall pattern – especially because the daily RSI momentum gauge has not confirmed the Aug 25 high, which if nothing else is a warning signal to us that the Q’s area climbing on decelerating power.
