Tarquin Coe, technical analyst at Investors Intelligence, on Wednesday said the 200-day exponential moving average could act as resistance for the S&P 500. “The general trend since the May high is down and the range of the past three months lacks the form of a healthy base as it’s too asymmetrical,” he wrote in newsletter.
The Nasdaq-100 and PowerShares QQQ (NasdaqGM: QQQ) have already risen above the 200-day moving average. However, the Nasdaq ETF trailed the broader market Wednesday as shares of Research in Motion (NasdaqGS: RIMM) and Apple (NasdaqGS: AAPL) weighed. [Nasdaq-100 ETF]
StockCharts noted QQQ has gotten cold feet at a key resistance level, and some momentum indicators suggest the ETF is overbought.
