Breadth for the Nasdaq QQQ and NDX have yet to reach exhaustion levels, as we discussed in the weekend video. It’s one of the reasons we focused on big-cap tech stocks this week. As a result, all of the FANG stocks closed higher. FB, AMZN, AAPL, NFLX, NVDA, and GOOGL outperformed.
Summary
Nasdaq McClellan Oscillator – NAMO
Price action is producing green Elder sticks. That will change to blue when the markets are ready to pause, a condition that would confirm ti is time to consolidate recent gains. As long as the index remains above the 200sma we can conclude that bulls are supportive.
Bullish cycles persist in the NASI Summation Index in the bottom panel. Look for momentum to slow before assuming a short-term pivot high ot turning point is being printed.
Nasdaq – Big Tech – XLK
This weekly chart of XLK, the SPDR technology sector, shows bulls are in control. Price action bounced at VBP support five (5) weeks ago, propelling it back towards moving average resistance. this week.
A move above these moving averages would be very bullish. However, until that happens, we are watching for cracks in big tech.
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Happy Trading,
Vinny
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