Nasdaq QQQ ETF Highest Since November 2000 After Streak
July 15th 2013 at 1:11pm by John Spence
PowerShares QQQ (NasdaqGM: QQQ) was aiming for its fourteenth straight day of gains on Monday as the popular ETF trades at its highest in over a decade.
The Nasdaq-100 ETF has climbed to its best level since November 2000, according to Investors Intelligence technical analyst Tarquin Coe.
However, he recommended caution as “technicals are becoming stretched,” according to a newsletter Monday. [Lucky 13 for Nasdaq-100 ETF]
“Breadth for the Nasdaq-100 is overbought. 87.5% of the index’s constituents are above their 30-week moving average, the same level which coincided with the May high. Momentum, 14-day RSI, is in overbought territory across 70 and in danger of printing a bearish divergence should it roll over in the sessions ahead,” Coe wrote. [QQQ Index Change: Tesla In, Oracle Out]
“Underperformance today by the QQQ is also turning down the relative chart, versus the S&P 500, from a resistance ceiling which has been blocking relative rally attempts for the past six months,” the analyst said.
Full disclosure: Tom Lydon’s clients own QQQ.
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