The Nasdaq-100 PowerShares QQQ (NasdaqGM: QQQ) clawed into to positive territory along with top holding Apple (NasdaqGS: AAPL) on Wednesday as the exchange traded fund found support at its 200-day moving average.
The ETF was up 0.7% in the final hour of trading after reversing an early decline. The Nasdaq was outperforming the S&P 500 and Dow on Wednesday. [S&P 500 ETFs Test Support at Pattern ‘Neckline’]
PowerShares QQQ tracks an index of the 100 largest nonfinancial stocks listed on the Nasdaq and is seen as a liquid vehicle for trading the tech sector.
The Dow and S&P 500 have both dropped below their 200-day moving average in the pullback. PowerShares QQQ was successfully defending the key technical indicator on Wednesday.
The recent stock sell-off has hardly touched tech leader Apple, which accounts for 14.2% of the Nasdaq-100 ETF.
Full disclosure: Tom Lydon’s clients own AAPL and QQQ.
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