Tech Indices Add To Breakout

The Nasdaq broke resistance yesterday, and today the 'bull trap' in the index was negated. Trading volume also climbed to register as accumulation, The Nasdaq is market leader against the S&P and Russell 2000; bulls will look for continued money flow into speculative issues to drive the broader rally.


The Russell 2000 also enjoyed a successful day, but it hasn't yet negated the 'bull trap.' Look for a challenge tomorrow, particularly if the Nasdaq can maintain its breakout.


Large Caps didn't quite post a breakout, but the S&P came close with a challenge on 2,120, also on higher volume accumulation and a return to net bullish technicals.


The Dow remained pegged by 18,100, but has been challenging this level for the past few days. Will tomorrow deliver the breakout?


Large Caps will be leaning heavily on a continuation of today's rally to deliver the needed breakout, although the indices have been lagging Tech and Small Caps peers for the majority of 2015. While the Nasdaq is leading other indices it hasn't yet reached the overbought conditions I consider to be a 'top' as determined by the relationship of the index to its 200-day MA.

You've now read my opinion, next read Douglas' and Jani's.

Share on StockTwits

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter




Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

JOIN ZIGNALS TODAY - IT'S FREE!

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more