Nasdaq QQQ ETF Highest Since November 2000 After Streak
July 15th 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.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.