NASDAQ finally ready for a clear breakout
Okay, finally, maybe, NASDAQ is ready for a clear breakout from the March near-term peak. Yesterday was a bit tentative, up moderately, but well off the high of the day. We finally broke the psychological 4,400 barrier yesterday, and NASDAQ is a full 1% (1.14%) above that March peak. Personally, I'd like to see a full 2% as evidence of real conviction, but incremental improvement is fine with me.
Futures are up moderately strongly this morning, a good sign, but we will have to see whether short-term speculators pile on for an intense short-squeeze rally or sell into any rally, and whether people buy into any dips.
If we do see a really strong rally, like 50 points or more, I would be cautious since those are frequently short squeezes that can just as easily flip over and trade back down in coming days as the intensity of buying evaporates.
-- Jack Krupansky