Powershares QQQ (NASDAQ: QQQQ) Hit Resistance

May 1, 2008

The Powershare QQQs (NASDAQ: QQQQ) reached the 50% retracement for the entire November 2007 to March 2008 decline and then reversed.

The QQQs rallied after the Fed cut interest rates on Wednesday, April 30, but upon reaching $48.05, exactly 50% of its entire correction loss, the QQQs reversed and closed lower for the day.

Is this the end of the rally for the QQQs? Not necessarily as the reversal at resistance was expected and is normal after an extended advance such as the QQQs have had.

After profit taking ends, a close above $48.05 in would likely be followed by an advance to at least $49.71.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in the Powershare QQQs.