Large Caps and Tech Breakout

After two days of losses bulls were able to push a move higher in Tech and Large Cap indices. The breakout in the Nasdaq was a clear run past the 50-day MA.  Volume climbed to register an accumulation day, along with a relative performance gain (against the S&P).

The S&P put some distance on its 50-day MA, but continued to lose relative ground against the Russell 2000.

The Dow also added to its breakout. However, relative performance against Tech indices took a sharp dip lower.

The Russell 2000 cleared the swing high, but finds itself up against declining resistance. However, it did finish with net bullish technicals.

The Nasdaq 100 added over 3%, slicing through its 50-day MA and opening up for a challenge on its 200-day MA.

Volatility also moved lower following two prior months of spike highs. Has this confirmed a swing low for 2016?

Today was a substantive move in bulls favour. The question now is whether it can maintain the move.

You've now read my opinion, next read Douglas' and Jani's.

Share on StockTwits


Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter

Dr. Declan Fallon is the Senior Market Technician and Community Director for, and
Product Development Manager for I also trade on eToro and can be copied for free.


Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq


Show more