The week started brightly, although buying volume was light. However, the Nasdaq is looking to accelerate its rally as today’s gain pushes against channel resistance. Given broad technical strength I would look to see a break by the end of the week.
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.
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.
The rally’s good health continues. No reason to sell or take profit yet.
You’ve now read my opinion, next read Douglas’ blog.
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Investments are held in a pension fund on a buy-and-hold strategy.
SOURCE: Fallon Financial Commentary – Read entire story here.