Nasdaq Puzzlement?
Often we will mention that the best breakouts tend to work right away. That goes not only for individual stocks but any tradeable instruments. Here we look at the Nasdaq, and it broke above a cup with handle just above the very round 14000 number. This is now the third time it has broken through the lofty level since 2/9. The tech-rich benchmark must be given the benefit of the doubt as it rests just 1% from its all-time highs here. Bulls want to see some distance put between itself and the breakout pivot, not fall apart abruptly. Tuesday the Nasdaq registered a bearish dark cloud cover, and although the majority of breakouts will be retested for their validity, so soon afterward is a bit of a red flag. A big say will be had by its largest components with both AAPL and MSFT bull flagging here, and AMZN which continues to feel uncomfortable CLOSING above the round 3400 number. Of course, each of these names REPORTS earnings this week, with this afternoon MSFT releasing numbers. The markets do their best to confound the most and be rest assured they will do so this week as well.