2 QQQQ Charts – October 1, 2009

I drew two QQQQ charts this morning to show views of both the past three months and past seven months.  The seven month view includes the March 2009 low and I wanted to include that in my longer term trend line of higher lows.  I’m also including the three month chart so you can see the recent prices better along with the trend lines.

The big stand out from both is that QQQQ is nearing potential support of its multiple trend lines of higher lows.  I picked a few different starting points and they all point to close to the same area in the low $40s.  If these lines start to break we could see a big correction in tech stocks.  The 10 day moving average (dma) has been the center of a seesaw for the past week and until today only provided resistance once recently.  With that resistance cam the breaking of support offered by the 20 dma.  The trip to the 50 dma isn’t far.  It hasn’t come into play since mid-July, so watching it will be interesting. 

Keep watching these trend lines of higher lows and if they hold I expect another run to the top trend line of higher highs.

A few minutes after I charted the past three months I charted the past seven months.