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QQQQ and SMH continue to stay between important support and resistance areas, while IWM has recently broken out of its consolidation to the upside and is in the process of pulling back and finding support at its breakout area.
You can see from the first chart of QQQQ that the ETF continues to move between the 43.50 and 44.50 area. The 50 day moving average has had little effect on the ETF, as it has continued to move in between these two areas. If 43.50 is broken, we expect QQQQ to fall to the lower support line. If 44.50 is broken, we feel that the ETF will push back to January highs.
SMH has continued to stay between the 33 and 35 areas. The ETF is sitting on its 200 day moving average right now, but the 50 and 200 day moving averages have had little effect on SMH's movement the last few months. A sustained break of Friday's high should push SMH to its October 2006 high, while a break of 33 would likely push the ETF to the 32 or 31.50 area.
IWM is currently looking the most bullish and healthy. Strong support is in the 79 area. If 79 is broken, we do expect support to hold at the 50 day moving average (presently at 78.50).
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