An exchange traded fund tracking Nasdaq stocks fell below its 200-day moving average in Wednesday’s sell-off in another sign of a potential technical breakdown in stocks.
PowerShares QQQ (NasdaqGM: QQQ) was down about 2% in afternoon trading Wednesday as the Dow dropped almost 200 points. Investors were unnerved by protests in Greece and Europe’s debt crisis.
Key Nasdaq-100 components and tech captains Apple (NasdaqGS: AAPL) and Microsoft (NasdaqGS: MSFT) also slipped about 2%.
Traders will be looking for any follow-through to the downside now that the ETF has breached the technical indictor.
The Nasdaq-100 fund came into Wednesday’s session with a year-to-date gain of 1.8%, according to Morningstar.
“Is this the big fear spike we needed to finally flush weak holders, or the start of a new bear market?” ETFProfit.com said on Wednesday. “So many technicians now follow the 200-day, it will be most curious indeed.”
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