The Nasdaq certainly tried hard to break out of its recent trading range on Friday but ended up closing right at the top of the range. It seems like money is starting to rotate into the Nasdaq. If that’s the case it couldn’t come at a better time because there’s a ton of resistance just above on the chart. I’m not saying that the Naz can’t go higher from here, just that it’s probably going to take some serious work or big news to chew through all of that overhead. I won’t even mention that options expiration is this week. Let the games begin…
The S&P 500 slipped back under its 200-day moving average on Friday.
Mike,
Watching and wondering the same thing, especially on the NAZ/QQQQ’s. This is going to be something to see and play. I don’t know if the rotation to tech at this time is premature (lot’s of cash pouring in) or not and could falter. I expect an oversold rally on OIL market that might come this week, (technically) and that might be the straw that pushes the NAZ back on its heels. If the tech’s make it past THIS WEEK by breaking and holding that 200 MAV then it would legitimize the overly bullish sentiment of many professional traders towards the Nasdaq. For me, I have been burned enough and either had my horns filed down or on other occassions got my paw stuck in a trap trying to second guess the market in this area (price trying to break major MAV’s) and will do what you are probably going to do, wait for confirmation one way or the other and take what she gives us.
Well said Aston. And yes, I’ll be waiting for confirmation before I jump in here, long or short