All three of the ETFs we follow have move higher since last commentary. QQQQ and SMH have been able to stay above crucial support levels and IWM has broken above its two month resistance in the 79 area.

All three of the ETFs we follow have move higher since last commentary. QQQQ and SMH have been able to stay above crucial support levels and IWM has broken above its two month resistance in the 79 area.

We believe it is possible for QQQQ to fall one more time to the 43.50 area. This would set up the possibility of an inverted head and shoulder formation. The first shoulder being formed around the 22nd of January, the head around the 26th of January, and the second shoulder within the next few days. If QQQQ does fall from here, we believe support will be found in the 43.50 area. The other possibility is that QQQQ will break above its resistance in the 44.50 area (indicated on the chart) and move up to its old highs from the middle of January (around 45.50).

SMH's technical position has improved. The ETF is above both its 200 day and 50 day moving averages. Today's high ran up against strong resistance in the 34.80 area. A break of this area should push SMH to the higher resistance line shown on the chart.

IWM has broken above its two month consolidation to the upside. Any pullback from here should find support in the 79 area (where the ETF originally broke out). If IWM did fall below 79, its 50 day moving average (shown on the chart) should stop the fall.