However, the tech-heavy PowerShares QQQ (NasdaqGM: QQQ) was lagging the S&P 500 on Monday, in a reversal of the recent trend. Google is the third-largest holding in the Nasdaq-100 ETF at about 6% of the portfolio. Google shares slipped nearly 2% after the company said it would acquire Motorola Mobility.
Yet PowerShares QQ has outperformed the S&P 500 since mid-June, said Coe.
“Like other index ETFs, a top was activated with the recent sell-off but this resilient area failed to follow through and achieve its downside objective. A bit more strength today will negate that pattern all together as trading would move back above the patterns neckline at $53.80 [a share],” the analyst wrote Monday.
