Weekly Market Commentary: Rally Continues

It was another week of gains which kept the 2009/10 rally chugging along. For the S&P there is still 27 points on offer before resistance becomes an issue and even then, comparable resistance as playing for Tech is around 1,400 (or 200 points away).


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For the Nasdaq it was an opportunity to touch the first of two reaction highs from 2008; it's hard to believe stocks are offering valuations based on pre-bank-fail prices??? The February 5th 'Sell' trigger holds


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The Nasdaq 100 did more by breaking past the lower of the two 2008 reaction highs, bringing the earlier 2008 reaction high around 2,022 into play. Can it reach the latter price?

Nasdaq 100

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Will the Bulltrap 'Buy' come true? Bullish Percents only a few points from prior high of 75%

Nasdaq Composite Bullish Percent Index

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Nasdaq Percentage of Stocks Above 50-day MA fast approaching resistance

Nasdaq Percent of Stocks Above 50 Day Moving Average

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As the Summation Index toys with a bull trap breakout

Nasdaq Summation Index

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All three of these Nasdaq Breath Indicators are calling a top. The current test of 2008 reaction highs is a good 'sell' signal. Best to wait for better re-entry points later in the year.

Sell in May and Go Away could be a very good strategy this year.

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