Stock Market Commentary: Breaking Resistance on Volume?

The Nasdaq 100 did enough to clear double bottom neckline resistance on higher volume, setting in place the groundwork for a higher high, higher low up trend. The spanner in the works was the resulting under-performance with respect to small caps - although this is not bearish in itself.

Semiconductors are on a second challenge of October highs and are looking more positive for a push to the 200-day MA. Note the new reaction high in the MACD; an uptrend is in play.

The relative strength of small caps conflicted against the tagging (but no break) of declining resistance in the index. However, the shift towards small cap leadership reflects a stronger long term bullish environment.

Sideline money will be getting antzy for a slice of the action.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

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