Thursday, February 11, 2010

Stock Market Commentary: Bull Breakout

Finally, bulls make their move. The Nasdaq enjoyed a clean channel breakout with a solid move higher - even if volume was a little disappointing. First test will be the 20-day MA overhead.

The Russell 2000 also enjoyed a channel breakout, matched with a CCI 'buy' signal.

The semiconductor index is up against the 20-day MA which will be a big test for the other indices for the early part of next week.

The S&P only managed to push just beyond channel resistance, but a shift in relative strength towards more speculative small caps is a bullish sign.

So with the shift we now have the most bullish alignment for markets with small caps leading tech leading large caps. Look for more gains Friday.

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