Nasdaq, Dow ETFs Reach New Highs (QQQ, XLK, DIA, IYJ)

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Major U.S. Stock Index ETFs Reach 8 Month, 11 Year Highs

Rallying on good earnings in the tech sector and a boost from the Federal Reserve, major stock index ETFs reach new highs with the Dow Jones Industrial Average hitting a new high not seen since last May and the NASDAQ hitting an 11 year high.

ETFs that track the Dow put in solid gains with SPDR DJ Industrial Average (NYSEARCA:DIA) gaining 0.65% as the Dow finished at 12,756, its best close since May, and iShares Dow Jones Industrial Index Fund (NYSEARCA:IYJ) followed suit with a gain of 1.1%.

Even more impressive, the Nasdaq 100 is at new 11 year highs, powered by Apple’s (NASDAQ:AAPL) stellar earnings and strength in the tech sector.

ETFs tracking the Nasdaq and tech sector rallied with PowerShares QQQ Trust (NYSEARCA:QQQ) jumping 1.3% and iShares Technology Index Fund (NYSEARCA:IYW) advancing 1%.

An 11 year high on the Nasdaq is impressive, to be sure, but today’s close leaves the index at 2818, still far below its all time closing high of 5048 on March 10, 2000, at the height of the dot com boom.

Bottom line:  Support from the Federal Reserve and strong earnings from Apple power the tech sector higher and leads to green in the Nasdaq.  The tech index is typically a market leader and strength here generally spreads to other sectors, increasing the possibility for higher prices ahead.

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