QQQQ Chart – March 27, 2009

I charted the QQQQ going back to December 31, 2008 to show its price action for 2009 year to date.

• QQQQ is at the top of its horizontal trading channel of highs that marked a turn lower
• QQQQ is in the middle of the sharply upward trading channel of higher highs and higher lows
• QQQQ is above its 10, 20 and 50 day moving average
• Williams %R indicator still shows strength with QQQQ in the overbought range
• Negative (distribution) days have come on lower volume

I’m watching Williams %R closely daily on QQQQ to see it it breaks below overbought.  That will be a big sell signal.  I’m not getting bullish at this point until I see if QQQQ can break its previous high limits.