Nasdaq Hits 15% Historic Price Action Highs as S&P Enters 10% Extreme Zone

The Nasdaq joined the S&P at historic highs as it hit the 15% zone of historic price extremes (relative to its 200-day MA). The S&P went a step higher as it touched the 10% zone of historic highs; i.e. it trades at levels above 90% of historic price action dating back to 1950 - a sign there isn't much left to this rally. If it makes it to 2,874 it will be in the 5% zone, a zone last seen in February 2011.

The Nasdaq continued to accelerate past its most recent upside channel on higher volume accumulation. Technicals continued to move higher in support of rising price action. While the index trades at historic price extremes it hasn't yet signaled a technical top.

The Russell 2000 made a tag of upper channel resistance in what was likely a continuation of any short covering generated by the original channel tag last week. The technical picture is not as favorable given the continued, sharp relative underperformance against its peer indices.  However, this can also be viewed as a positive as it also represents a more sustainable rally.

The Semiconductor Index added a little extra to its earlier breakout as it continues to tempt sideline buyers.

For tomorrow, it's about seeing how far the S&P and Nasdaq can continue to push into the zone of historic price extremes. Profit taking remains the order of the day.

You've now read my opinion, next read Douglas' blog.

I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".

If you are new to spread betting, here is a guide on position size based on eToro's system.

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 a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.

Popular posts from this blog

Markets attempt a swing low for the seven day decline

Low volume selling after Russell 2000 breakout

Minor losses pressure Thursday's reversal attempt


Show more