The Nasdaq-100 PowerShares QQQ (NasdaqGM: QQQ) is the first major stock exchange traded fund to test its 200-day simple moving average in the bounce since the summer sell-off.
The Nasdaq ETF rose 0.5% on Thursday but was off its session high.
In early August, the widely followed U.S. stock indexes fell below their 200-day averages and have been stuck below ever since, said J.C. Parets at All Star Charts.
“For a stock or index to be in a well-defined uptrend, I want to see it trading above an upward sloping 200-day moving average,” he wrote.
While the S&P 500, Dow Jones Industrial Average, Russell 2000, NYSE Composite and Dow Transportation Average are still well below this key indicator, the Nasdaq-100 is the first to attempt to recover it, Parets said.