The QQQQ Report for August 28th - September 1st, 2006

In our last report, we mentioned that the QQQQ blew past the resistance of its 50 DMA and was quickly heading toward the 100 DMA. As you can see from the chart below, the looming presence of the 100 DMA was enough to prevent large gains like the ones we saw the week of August 14. It looks like the QQQQ may test the support at the bottom of the gap (illustrated by the dotted lines) near $37.75. We'll continue to watch the 100 DMA because this moving average is the next major resistance that is preventing the long-term downtrend from continuing.