Tech Back in Vogue:
Salty veteran traders insist that no rally can persist without the financials participating, but it is always good to see technology thriving. There is a feeling of “risk on” again and could there be more gas in the tank? I believe so as more breakouts are being recorded, and the daily chart of the Nasdaq below shows a strong breakout and follow-through after Monday’s bullish hammer Tuesday up another 3%. It has cleared the 200-day SMA and here it could be considered a break above a bullish inverse head and shoulders formation trigger of 18000 (and notice how the benchmark has ignored the doji candle circled from 5/8). The depth of the pattern registered a bullish counterattack candle at the very round 15000 figure on 4/7 and look for this to achieve a measured move to 21000 sometime in early Q2. Nothing goes up in a straight line and bulls should look for some consolidation in this area but tech via, the XLK just crossed into the black for 2025 and wants more. If this rare WEEKLY gap holds by Friday’s CLOSE it would be the first in more than 2.5 years and it is now back above the 200-WEEK SMA too.