Nasdaq and S&P Breakout

Gains for indices were enough to drive new swing high breakouts. There wasn't a whole lot of volume following the Easter holiday, but the intention was clear.

The Nasdaq managed a new closing high which cleared both the late February and March swing highs on the back of a bullish cross in momentum stochastics, and a continued improvement in relative performance to Small Caps.

The S&P also cleared trendline resistance in an acceleration of the bullish trend. There was a bullish cross in On-Balance-Volume to support the ADX and MACD. Momentum is overbought, but not in a way to suggest a stop is in place. 

The Russell 2000 was more low key. While it posted a gain it wasn't able to challenge any major price resistance, although there was a bullish cross in stochastic and an acceleration in On-Balance-Volume.

In terms of the movers-and-shakers, we have a Semiconductor Index which cleared the February swing high with technicals net bullish and relative performance also at a new swing high.  This strength should help the Nasdaq and Nasdaq 100. 

The rotation away from Small Caps continues, with Large Caps (and Tech, to a lesser degree) benefitting. Large Caps have been steadily improving, but Tech has been in consolidation mode for a couple of months now, and this will likely lead to a more bullish outcome in the latter part of this year.  Small Caps still have plenty of mean reversion to do, but they remain well above their 200-day MA; in fact, the index is still above the 95% of historic bullish action relative to its 200-day MA going back to 1987; plenty of profits still to take here...

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

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

Investments are held in a pension fund on a buy-and-hold strategy.


Popular posts from this blog

Bull Flags for Nasdaq and S&P

"Inverse Hammer" on Russell 2000 Breakout

'Bear Traps' for the Nasdaq and S&P as Russell 2000 holds above support


Show more