The Nasdaq 100 (NDX) and the (QQQ) are outperforming the big cap (SPX) and small-cap (IWM) indices. We continue to focus on the technology stocks that make up the Nasdaq, as the S&P 500 and Russell consolidate at current levels.
Nasdaq and QQQ
Nasdaq and QQQ broke above the September pivot highs last week. The follow through at this point is evident. NDX shows one distribution day on above-average volume this week, although the bullish spikes in above-average volume more than cancel this negative sentiment. Unless we see more distribution days, the trend is up.
S&P 500 Sectors are mixed as industrials and transports show some selling yesterday. XLC, XLK, XLY are strong.
These sectors have shown bargain hunters fishing for value. Healthcare, in particular, remains in focus. Watch for follow-through.
Our thoughts, for the most part, hinge on “Spring Break.” Those traders and investors are absent. The low volume is obvious, so trade smaller and take fewer positions until next week. If you do trade, focus on Nasdaq (NDX) and (QQQ), technology stocks and healthcare. Retail has been strong as well.
@Leestar shared his chart with me this morning. I agree that Wayfair (W) looks ready to break out. Watch for follow-though.
A break out through “kumo” resistance is imminent. MACD is turning fast.
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