Alert: Key Levels Tagged On QQQQ
The gap lower today took many key stocks and indexes to major support levels. Whenever a panic gap lower nails massive supports the markets will almost always rise of these lows. This is why using charts is so important for investors, swing traders and day traders. A great example can be seen today on the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQQ). This is the ETF for the Nasdaq 100 and a good barometer for technology. Today, the QQQQ opened lower at $54.64. This was a drop of almost 3%. This gap down level also was the gap fill point from the closing levels on December 31st, 2010. In other words, the QQQQ erased all the gains from 2011. Based on gap fill and a flat for all of 2011, major support was found. The QQQQ has since rallied strongly higher, now trading at $55.33, -0.96 (-1.71%).