Weekly Market Commentary: Buyers Drive Markets Higher
Courtesy of Fallond Stock Picks
It was a good week for market bulls. The Nasdaq broke past the lower of the two resistance highs of 2008 but finished just high of the 2008 high. If the Nasdaq can crack 2,535 it will be racing towards pre-recession highs (unbelievable!).
(Nasdaq)
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The Nasdaq 100 went further; it cracked the 2008 high and is on the way to testing the second of two reaction highs of 2007.
But the S&P is significantly lagging, lying a few points off resistance / former support, which broke during the 2008 credit crisis crash.
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Small Caps closed the week up almost 4% but has room to maneuver to 2008 highs.
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Market Breadth indicators are mixed. The Percentage of Nasdaq Stocks above 50-day MA is still pegged by declining resistance from 2009.
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Although the Nasdaq Summation Index has pushed a new multi-year high.
Nasdaq Summation Index (Ratio Adjusted) ($NASI)
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With the Nasdaq 100 leaving 2008 behind, the challenge is for other indices is to follow suit. It’s hard to believe the markets can consign 2008 to history but that is what the Nasdaq 100 has done. Would you rather be a seller or buyer?
Buyer beware.