More Green Shoots from the Nasdaq 100

Yesterday I noted that the Russell 2000 was showing early signs of a reversal to the upside. It was still far from a guarantee but price action was improving. Today you can add the Nasdaq 100 to the list. More green shoots emerging. The picture below shows the signals for the Nasdaq 100, and they are similar to the Russell 2000. After trending higher since April 2017 the Nasdaq 100 accelerated in January reaching a top. It fell back to the longer term trend support into February and settled into a sideways consolidation.

The first bounce off of the trend support resulted in a new all-time high. But since then it had pulled back to a higher low followed by a lower high in April. Another drop found a another higher low at the same rising trend support later in the month before a bounce. The bounce made a significant move Wednesday, pushing over the April high. A higher high after a higher low, a nascent uptrend, joining the Russell 2000.

There are coincident signals that this move higher may have some lasting power as well. The Bollinger Bands® are opening to the upside to allow a move higher. The RSI is rising and now breaking into the bullish zone. And the MACD is moving higher and positive. All support further upside and none are anywhere near being overbought or overheated. A next step in establishing a bullish trend would be to close the gap from March 19th and then new all-time highs.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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