Friday was a clear victory for the with a breakout to go along with higher volume accumulation and a close above the 200-day MA. Nasdaq technicals retained their net positivity and it will take a sharp loss Monday or Tuesday to undo this positivity. Step by step, this nascent cyclical bull market grows in strength.
Nasdaq Composite Daily Chart
The has edged closer to a breakout of its own. It now finds itself up against resistance and close to negating the 'black' candlestick from December. Technicals continued to improve, although the index is still underperforming relative to the .
S&P 500 Daily Chart
The Russell 2000 retained its breakout, this time, doing so with a candlestick that negated the bearish implications of Thursday's 'black' candlestick. Volume rose to register as accumulation, although the index lost further ground relative to the Nasdaq. Despite this, growth stocks look to be in good shape.
Russell 2000 Daily Chart
With the Nasdaq and Russell 2000, the once-leading has slipped back a little. The index remains range-bound, but technicals are net positive and Friday is registered as an accumulation day. Should the Russell 2000 and Nasdaq continue to gain, then I would expect the Dow Jones (and S&P 500) to follow suit.
Dow Jones Industrial Average Daily Chart
With the Nasdaq performing strongly, we have the in assistance. Attempts by sellers to reverse the breakout have so far, failed. Technicals are net bullish and semiconductors are outperforming the . It's a solid setup and has the added benefit of a 'golden cross' between 50-day and 200-day MAs.
Philadelphia Semiconductor Index Daily Chart
With markets continuing to improve the one thing to watch for are 'bull traps`; i.e a reversal of recent breakouts with a close below breakout support. Until this happens, bulls remain in control as new - larger bases (building off all-time highs) - take shape.
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.