Markets relaxed and held on tight to last weeks bulging gains Monday. Volume was quiet, and true to form the Nasdaq outperformed, doubling the S&P 500’s .2% rise. The markets do seemed stretched here, but that has been blasted over every loud speaker throughout the world, including perhaps in the solar system too. Their were numerous breakouts today, but to name a few LOW took out a flat base trigger of 40.08, and the airline group remained red hot as ALK took out a 64.65 flat base pivot point. SAVE, in the sector tacked on another 4% today, just the type of action you like to see from a recent breakout. Taking a look at new highs versus new lows shows just how strong the breadth is recently. Last Thursdays figure came in for the NYSE at 220 new highs against 11 new lows. The Nasdaq was 112 to 8. Friday the number was even more lofty. The NYSE figure was 407 to 9, with the Nasdaq 271 to 13. Taking a glance at the SDS, it looks like a move to the round handle of 40, could be a spot to trim some longs.
This article requires a Chartsmarter membership. Please click here to join.