“One day or day one. You decide.” -Unknown
Behaving Bullishly:
Technicians like to say the best breakouts tend to work right away and follow through POST the move. This is exactly what technology is doing at the moment, and when tech leads that is a good overall sign going forward. The daily chart of the Nasdaq shows a nice move after the bull flag breakout, and it is pausing, not surprisingly, at the round number of 15000. Ideally, we want to see a push above last week’s highs to negate that bearish reversal on 12/20 that saw from top to bottom of the daily range a 300-handle range. When in doubt zoom out, and on the WEEKLY chart we can see a visually impressive 8-week win streak accompanied by above-average volume. This was accomplished last during the 8 weeks ending between 4/28-6/16 and it ground higher from there by another 5% before forming the current handle on the long cup base that started 2 years ago. Last week the tech benchmark rose 1.2%, a good follow-through from the week prior that jumped almost 3% breaking above a cup with handle pivot of 14450 in the best WEEKLY volume in almost 3 years. The big picture looks good for tech and look for a move to 16000 last touched in late 2021 in Q1 2024. Notice again how 2023 started with consecutive bullish dragonfly doji candles at the very round 10000 number. Bulls would love to see another start to the year in 2024 that happened in 2023.