Round Number Familiarity:

To use a tennis analogy, when you are number one in the world everyone is gunning for you. That is what technology must feel like at the moment. The Nasdaq which rose in the 40% neighborhood in consecutive years, and has gained 10 of the last 12 years (the two decliners fell by just 1.8 and 3.9% in ’11 and ’18). We hear chatter that energy will have a solid year, as no major S&P sector has ever finished dead last for 4 years in a row (XLE has achieved that ominous distinction the last three). Value vs growth debate never seems to go away, and will industrials or materials make a run at tech? Of course no one knows for sure, but knocking down the “top dog” in tech will be no easy feat. Looking at the overall picture with the chart of the Nasdaq below, it is doing a lot right technically. PRICE is paramount, and with today an exception, it seems ready to forge ahead to its bullish ascending triangle measured move of 13500. That is roughly just 5% from here, and keep in mind targets are merely guidelines, and often have investors selling prematurely. Buckle up this year. It should be a wild ride. 

This article requires a Chartsmarter membership. Please click here to join.