Nasdaq Leads Indices - Market Analysis for Jan 9th, 2007
The Nasdaq indices continue to lead the market (technology issues), but I would feel a heck of a lot better if the other indices showed move umph on the upside...Let's take a look at the Q's ...
Last week's pivot low at 42.52 certainly looks and feels as though the Q's ended a correction (from the 11/24 high at 44.86) and started a new upleg within the larger uptrend off the July lows. Although the action during the last four sessions has amounted to a range trade (44.20-43.70), the entirety of the post 1/03 upmove views the sideways action as a bullish consolidation period prior to a resolution to the upside that will propel the Q's to test and hurdle the Nov-Dec high at 44.86/84.
Only a break below 43.50 will weaken the bullish scenario, while a break of 42.52 will be outright negative.