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QQQ's holding their own

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While most sectors are getting drilled today, the QQQ is showing some signs of strength - or at least not complete weakness. The only green on my screen is coming from the tech sectors, SOX, GSO, XCI, and INX.

Nasdaq-100 Index (QQQ) Chart - 60-minute interval

QQQ is holding onto the 40 level. Resistance limits the upside to 41, and a drop below today's low at 39.49 could spell trouble. Even if prices can get above 41 I wouldn't think about going long while the sky is falling. One of the stocks that is bolstering the QQQ's is Ciena (NASD:CIEN).

Ciena (CIEN) Chart - 60-minute interval

Ciena is up 1 1/8 today, but the upside is limited by the 50- period moving average. Once again I wouldn't consider a long position right now, and there are much better short candidates. This is just an observation of where some trace amounts of strength are coming from. Ciena could be setting up for a short play once bears get tired of battering the Dow stocks, but right now I'm just watching it.

Jeffrey Canavan
Assistant Analyst

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