Round Number Theory:

Technology was one of the best actors Friday with the XLK just one of three major S&P sectors in the green. The Nasdaq finally CLOSED above the 16000 figure, which also doubled as a flag breakout. The candle was not convincing so let us see how next week trades above the round number, and one should lean bullish as holiday-shortened weeks are often positive. Talking about round numbers in software the chart below of SNOW is back at a recognizable number in 400. It visited the area not long after coming public, and the week ending 12/11/20 was nearly 30 handles above 400 but CLOSED below after recording a bearish dark cloud cover. The jury is still out to what SNOW does here, but the sample is too small. I think strength will materialize into year-end, but the markets could care less what I think. Let PRICE confirm. The IGV now sports a bull flag of its own. Above 450 targets 500. The group has been strong. PRICE is extended on many, as just from a simple look there are 25 names above 300 and 74 above 100. But keep in mind trends have a tendency to persist more than they are to reverse. Trade accordingly.

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