If we're going to see one more "risk rally" in the months ahead, there needs to be a market leader. On Friday I saw that $QQQ, or the Nasdaq 100 Index ETF, pierced through May and early July ceiling resistance (59.32). But, tonight, with the ongoing debt ceiling feud, the E-mini Nasdaq September 2011 Future lost 0.85% and moved back below that key resistance level (2,422). It is now down 0.66%. In my opinion, the Nasdaq 100 looks the best on a technical basis when compared to the Dow, S&P, Transports and Russell 2000. So we'll see if it can lead the market here, or confirm a top.
PowerShares QQQ (Nasdaq 100 ETF) - Courtesy of OptionsXpress
E-mini Nasdaq September 2011 Future (Courtesy of OptionsXpress)