Thursday, April 23, 2015

Tech Indices Add To Breakout

The Nasdaq broke resistance yesterday, and today the 'bull trap' in the index was negated. Trading volume also climbed to register as accumulation, The Nasdaq is market leader against the S&P and Russell 2000; bulls will look for continued money flow into speculative issues to drive the broader rally.

The Russell 2000 also enjoyed a successful day, but it hasn't yet negated the 'bull trap.' Look for a challenge tomorrow, particularly if the Nasdaq can maintain its breakout.

Large Caps didn't quite post a breakout, but the S&P came close with a challenge on 2,120, also on higher volume accumulation and a return to net bullish technicals.

The Dow remained pegged by 18,100, but has been challenging this level for the past few days. Will tomorrow deliver the breakout?

Large Caps will be leaning heavily on a continuation of today's rally to deliver the needed breakout, although the indices have been lagging Tech and Small Caps peers for the majority of 2015. While the Nasdaq is leading other indices it hasn't yet reached the overbought conditions I consider to be a 'top' as determined by the relationship of the index to its 200-day MA.

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, and Product Development Manager for I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on