Meanwhile, PowerShares QQQ has encountered resistance in recent weeks at the so-called 38.2% Fibonacci retracement line of the tech collapse from 2000 to 2002.

“The six month chart shows that level clearly presenting resistance and even as recently as yesterday the ETF was rebuffed by its existence,” the analyst wrote in a note to subscribers Friday.

The 38.2% retracement line for PowerShares QQQ stands at $58.24 a share.

A close above this level and follow-through “will open the gates to a strong rally,” Coe said. “Beyond the 38.2% retracement, the next target level for the QQQ is $70.13, a 50% retracement of the dot-com bubble collapse.”