Courtesy of Declan Fallon
The Nasdaq Bullish Percents added another couple of points – but has room to travel to resistance.
While the Summation Index is very close to all-time highs (and is doing a very good impression of the rally from the March 2009 low).
These gains in breadth were enough to keep the Nasdaq flat on the week (on lower volume)
Compared to the 2% loss in the Russell 2000
But there was also a flat close for the S&P on the week, also on light volume.
Given the length of the rally, last week’s losses on light volume were welcome. So a few more weeks like last will nicely set up the next phase of the rally. But with market breadth close too – if not already – at a point where an extended period of downside is favoured, discretion may be the better side of valor.
In this enviornment, stock breakouts are numerous – but most tend to be false moves.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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