Stock Market Commentary: Breakout!
Courtesy of Fallond Stock Picks
Following the lead of Large Caps were breakouts for the S&P, Nasdaq and Nasdaq 100. But not to be out-done, there was a second breakout for the Dow to take it outside of its 5-month channel. All breakouts were achieved on higher volume – marking another day of accumulation for the markets. [click on charts to enlarge]
Relative strength has swung back in favor of tech over large caps – a bullish development. But small caps continued to underperform, although they had a good day today with a net bullish turn in technicals.
The semiconductors didn’t disappoint either by breaking through its 50-day MA.
Of breadth indicators, the Nasdaq Summation Index made a bullish cross of its 5-day EMA from a relatively oversold position. Supporting technicals also edged higher with a ‘buy’ in the Ultimate Oscillator.
Tomorrow will be interesting. Breakouts in play but can support hold on the next round of weakness? A quiet consolidation day would be an ideal scenario for the markets.
