Ready to break about the Nasdaq 5000 hats? The benchmark broke above it intraday, did what many were forecasting it to do, which was falling back below, but then made a strong final push above by the end of the session. Energy and utilities were the laggards as things in motion tend to stay in motion, meaning what is weak will tend to remain so. Some utility plays are beginning to look attractive technically as many best of breed names are nearing 200 day SMA tests. The energy plays have been soft and their charts less alluring at the moment. The Nasdaq which is obviously tech dominated received some merger Monday news in its best subsector, the semiconductors with NXPI taking down FSL. The former Motorola spinoff proved where there is smoke there is often fire as it jumped 8.2% on 2/13 after buyout rumors surfaced. The stock looked like it had turned itself around with 2 consecutive solid earnings announcements higher by 18.3 and 2.9% on 1/28 and 10/24. Both stocks blasted higher with NXPI advanced 17% and FSL by 12%. One would be smart to focus their attention on this strong group as we discussed earlier in the paragraph that which is in motion tends to stay that way, and in the stock market that can be a lot longer than you think. A name that looks to have been battle tested is ASML. Below is the chart from our Game Plan last Thursday. Its double bottom breakout pivot of 108.05 was tested last Thursday and Friday and the stock flexed its muscles.
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