Daily Market Commentary: Nasdaq and Nasdaq 100 Breakout

Large Caps made their breaks yesterday, today was the turn of the Nasdaq and Nasdaq 100. The Nasdaq 100 breakout coincided with a second, relative strength swing back to Tech indices (from Small and Large Caps). Despite the swing, the Nasdaq hasn't returned to a MACD trigger 'buy,' and trend strength is weakening as determined by the falling ADX.

Large Caps added to yesterday's breakouts, but the gains were relatively minor. However, further pressure will have been added to any outstanding short positions as volume climbed to register an accumulation day.  The S&P also finished with a MACD trigger 'buy' (with the signal line well above the bullish zero line - a strong 'buy' signal).

Small Caps bucked the trend by closing the day flat.  Yesterday's sub-channel breakout stands, but the long standing relative loss against the Nasdaq accelerated.

Bulls hold the cards. and stops can go on a loss of the breakout (i.e. a confirmed 'bull trap').

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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