Nothing fancy for the week, just steady gains for indices.  These gains keep in play the rally from October. Market breadth continued to improve alongside index gains. Certain market breadth indicators are at declining resistance dating back to 2010, important tests, because breach these and the rallies will be well placed to continue for the next few weeks (if not months). The Percentage of Nasdaq Stocks above the 50-day MA is one such market breadth indicator at resistance. With 72% of stocks above this intermediate trend average it suggests the Nasdaq is only in the early phase of its rally (a couple of weeks ago the percentage of Nasdaq Stocks above 50%, was just above 50%). Nasdaq Bullish Percents are above the 50% mark And the Summation Index is above zero These breadth indicators suggest there should be enough for the Nasdaq to break declining resistance (already breached for Small and Large Cap indices) and push on to new highs. The Russell 2000 has ma...

Yesterday, semiconductors were stalling out at their 200-day MA; today there was no holding it back. The day started with a gap and didn't look back. In the process of breaking the 200-day MA it also negated the October and November 'Bull Traps'. The gain was also accompanied with a 'Golden Cross' between 20-day and 50-day MAs. The 5% move in the semiconductor index was also good news for the Nasdaq. The Nasdaq broke past 2,737 resistance defined from the October swing high and registered an accumulation day. The December-January rally continues to drive improvement in technicals as the relative shift from Large Caps to Technology issues intensifies. The Nasdaq 100 similarly broke resistance on higher volume accumulation. The Russell 2000 took a back seat on the action, but not before it added nearly 2%.  It was able to break resistance last week so is slightly ahead of the curve, despite losing ground against the Nasdaq. The long side remains th...

A little disappointing markets weren't able to push on after a strong start, but many indices registered accumulation days. The S&P finished near its October swing high, although it's in the process of turning this former resistance level into support. While stochastics are overbought, On-Balance-Volume and MACD continue to trend higher on the side of bulls. The Nasdaq retained some of its morning gap, but it's the shift in relative strength towards this index (from Large Caps / S&P) which is the most positive. Perhaps this rally is only just beginning? While the Nasdaq attracts interest from buyers, the Russell 2000 is losing some of its love (to the Nasdaq). However, the swing high breakout holds. The index to watch tomorrow is the semiconductor index.  With the Nasdaq performing well it will be important it can draw on strength in semiconductors. At the moment, the index is struggling at its 200-day MA. The rally keeps on moving higher until...