4/25/2011

Market is attempting to take out the high


Market is attempting to take out the high. So far only DJ30 has surpassed its recent high.

In last 2 days we have 2 gap ups on Nasdaq 100 and S&P 500. Which might lead to a churn or minor pullback at this level to digest recent gains.
The breadth has been slowly improving and we do not have breadth thrust like we normally see at beginning of big rallies.
However for many months the market has managed to go up on weak breadth. As long as breadth continues to improve it is a bull market. Any 300 plus day to downside will put rally under pressure.
Large cap stocks are showing some good breakouts. IBM, ORCL, INTC, QCOM, EMC, HAL, JNJ, UTX have shown good buying in recent weeks. EBAY might be worth tracking for possible breakout in large cap category.
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