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Actionable news in QQQ: PowerShares QQQ Trust, Series 1,

Here's How Stocks' Upward Momentum Will Slow

The five major equity averages have been rising for months now, and it is apparent that demand is pushing prices to levels that don't support the fundamentals. That's why overbought conditions are beginning to spread on all but the Nasdaq Composite (NDAQ) .

However, the Nasdaq's high so far this year of 4,961, set last week, is below the price gap to the Dec. 31 low of 5,007. Lower oil prices following a failed OPEC meeting on Sunday should prevent the price gap from being filled this week.

The daily charts for five major equity averages show differing status of strength, which shows there are signs the upward momentum may start to slow. Let's take a look the exchange-traded funds you can buy to invest in these stock averages.

The Dow Jones Industrial Average (INDU) can be traded using the SPDR Dow Jones Industrial Average ETF (DIA) , aka Diamonds. The S&P 500 (^GSPC) can be traded using the SPDR S&P 500 ETF Trust (SPY) , aka Spiders. The Nasdaq Composite is best traded using the ETF that represents the Nasdaq 100, the PowerShares QQQ Trust ETF (QQQ) , dubbed QQQs. The Dow Jones Transportation Average can be traded using the iShares Transportation Average ETF (IYT) . The Russell 2000 can be traded using the iShares Russell 2000 ETF (IWM) .

The key weekly moving averages for these ETF: $173.69 Diamonds, $202.67 Spiders, $107.65 QQQs, $138.72 transports and $108.47. Weekly closes below these levels would be technical warnings.

Here are the daily charts and trading levels for the five stock market ETFs.


Courtesy of MetaStock Xenith

The daily chart for Diamonds ($178.68 close on Friday) shows the Fibonacci retracement from the May 20 all-time high of $183.35 and the Aug. 24 low of...