Why Thursday’s Action Is Significant
On Thursday, the Nasdaq rallied in early trading, consolidated throughout
mid-day, and then rallied again late in the day. This action has it closing in
on the 2100 resistance level (see Wednesday’s audio/visual presentation for more
on the significance of this number, email me if you need the link to this and to
the archives for the last year).
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The S&P put in a somewhat similar performance.Â
This action breaks it out of its short-term trading range. Â Â
So what do we do? Thursday’s action is
significant. In addition to the aforementioned positive action in the indices,
the sector action was very constructive. Here are some highlights:Â
Recently weak biotech finished up sharply. The semis and software appear to be
resuming their uptrends. And, the breakout in retail remains intact. So far, so
good. Before getting too aggressive though, you might want to make sure the
S&P can hold these breakout levels and you might want to make sure the
Nasdaq can get past the 2100 level.
There weren’t many meaningful setups tonight (Thursday). If
the market can follow through, we could see plenty of setups soon.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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