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NASDAQ Could Accelerate Its Rally This Week

Published 01/14/2020, 12:49 AM
Updated 07/09/2023, 06:31 AM

The week started brightly, although buying volume was light. However, the NASDAQ is looking to accelerate its rally as yesterday's gain pushes against channel resistance. Given broad technical strength, I would look to see a break by the end of the week.

COMPQ Daily Chart

The S&P has moved into the middle of its narrow channel as technicals are bullish with relative performance improving markedly against the Russell 2000. The MACD is looking to recover from a brief flat-line period as it remains well above the bullish mid-line. Volume climbed a little to register as possible accumulation.

SPX Daily Chart

Small caps are working through the breakdown in the rising channel, but action since the breakdown has been positive. Given the sharp downward trend in relative performance it may be a while yet before the index rises to challenge the 2018 high.

IWM Daily Chart
IWM Weekly Chart

The rally's good health continues. There is no reason to sell or take profit yet.

Latest comments

Markets will be crazy choppy thru weds but will keep going up until later in the wk. then the mass selloff begins.
I love your always brief, no nonsense analysis! Priceless!I know you write what you analyze and don't get into speculation, but how long you expect this bullish hella to continue?
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