Weekly Market Commentary: Nasdaq Ready to Run?

Can the Nasdaq follow the Nasdaq 100 higher? The index cleared a five week consolidation and is on the cusp of pushing through supply and into 'fresh air'.

AAAA Nasdaq

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The Nasdaq 100 is leading the way. It too cleared its consolidation, but from a position of strength (i.e. limited supply). The trend is your friend.

($NDX)

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The Russell 2000 is also catching upward momentum with a bull flag breakout. If it plays out as a measured move then look for a push towards 1,000.

($RUT)

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The S&P is also above a resistance level and has 1,440 in its sights

($SPX)

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Overall Market Breadth for Nasadaq and S&P is in general decline (bearish divergence), but is far enough away from resistance to suggest this rally could move higher. The Nasdaq Summation Index is one such example, moving to a confirmed 'Sell' Trigger but offering upside potential.

($NASI)

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Play it long until proven otherwise. On the weeklies, this means an undercut of last week's low as a minimum.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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