Tuesday, March 01, 2016

Large Caps and Tech Breakout

After two days of losses bulls were able to push a move higher in Tech and Large Cap indices. The breakout in the Nasdaq was a clear run past the 50-day MA.  Volume climbed to register an accumulation day, along with a relative performance gain (against the S&P).


The S&P put some distance on its 50-day MA, but continued to lose relative ground against the Russell 2000.


The Dow also added to its breakout. However, relative performance against Tech indices took a sharp dip lower.


The Russell 2000 cleared the swing high, but finds itself up against declining resistance. However, it did finish with net bullish technicals.


The Nasdaq 100 added over 3%, slicing through its 50-day MA and opening up for a challenge on its 200-day MA.


Volatility also moved lower following two prior months of spike highs. Has this confirmed a swing low for 2016?


Today was a substantive move in bulls favour. The question now is whether it can maintain the move.

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

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and
Product Development Manager for ActivateClients.com. I also trade on eToro and can be copied for free.

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