Quiet Friday Helped Maintain Indices Breakouts

Friday's action in the indices didn't do a whole lot, but what it did do was help carry last week's breakouts through the weekend. The breakouts were fairly modest and overhead resistance in the shape of 200-day MAs is still a concern for some indices, but last week's action is favorable for bulls.

Tech indices were the primary driver last week with the Nasdaq clearing declining resistance with a decent looking breakout on higher volume accumulation; better still is the sharp advance in on-balance-volume - a sign of sustained interest from Big Money to participate in this rally. The Nasdaq does enjoy a relative performance advantage against the S&P, the question is whether it can sustain it.  It still has the 200-day MA to overcome but momentum and short term traders may still be able to eke out a trade on a test of this key long term moving average.


The Nasdaq 100 is in a similar position to the Nasdaq with the same goal for a push to the 200-day MA as a starting play for traders. 


Both the Nasdaq and Nasdaq 100 are helped by the growing strength of the Semiconductor Index. This index is pressuring horizontal resistance as relative performance enjoys a jump against its sibling Nasdaq 100. Note, this index has already surpassed its 200-day, which is good news for both the Nasdaq and Nasdaq 100 (to do likewise).


Of Large Cap indices, the Dow Jones Industrial average has cleared declining resistance from the October all-time high and has also made it past its 200-day MA. Relative performance has ticked a little lower against the Nasdaq 100 but it does have a price advantage in been over its 200-day MA


The S&P is lagging a little behind the Dow as it's still to break its 200-day MA. The index is underperforming the Russell 2000 - which is no bad thing as bulls want to see money flow into more speculative issues than defensive Large Cap stocks.

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