The QQQ ETF is an ETF that tracks the NASDAQ-100 index. The NASDAQ-100 differs from the NASDAQ composite index in that it lists only the largest 100 companies and excludes Financials. This index peaked at 120 back in March 2000 but this level hasn’t been touched since then. That was, until today! A monthly close above this key 120 level would support a technical breakout from an ascending triangle pattern with a target up near 220.
QQQ daily: price action has been lurking right up under the 120 resistance level for the last five or so months but was finally broken today:
QQQ weekly: there was some broader consolidation under this 120 level during the last two years:
QQQ monthly: price action has been steadily grinding higher since the lows of 2008/9 and this has formed an ascending triangle pattern. The height of this triangle is about 100 units suggesting that any monthly breakout above 120 might reach higher by this same order of magnitude. The target would therefore be 220:
Other Index ETFs: other index ETFS have already embarked on their own triangle breakouts and some have even reached their bullish targets:
SPY monthly: this is the ETF for the S&P500 index. This still has a bit of room to go before reaching its breakout target:
DIA monthly: this is the ETF for the DJIA index and it has nearly reached its triangle breakout target:
IWM monthly: IWM is the ETF for the Russell 200 index and this ETF has already completed its bullish ascending triangle breakout and reached the target of 135.
Summary: The NASDAQ-100 ETF has made a daily close at its highest ever level and any monthly close above this 120 region would support a bullish triangle breakout. A number of other index ETFs have already made ascending triangle breakouts and are on the way to their bullish targets. Thus, watch for any monthly close on the QQQ ETF above 120 to support a bullish ascending triangle breakout move up to the target of 220.
The post Big day for the QQQs: closes above the 120 breakout level! appeared first on Trade Charting.
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