Very little change in the markets, but there was a net bullish turn in technicals for Nasdaq breadth metrics. The Nasdaq Summation Index is in a clear advance and is on course to reach an overbought state. This breadth metric is a good confirmation signal for swings in the parent index, and it’s suggesting more upside. Â For the Nasdaq Summation Index to reach an overbought state, it would take another couple weeks of gains in the Nasdaq.
The Nasdaq Bullish Percents also turned net bullish. The last swing low was significant and the rally off it strong. It tends to get toppy in the 70s, but like the Summation Index it suggests there is more upside to come.
The Nasdaq is already in the rarified air of new 52-week highs as it looks to mount a challenge of 2000 highs.
The S&P remains primed to break. It’s sitting nicely below resistance and is looking attractive.
The Russell 2000 is also preparing for a new breakout, with the ‘bull trap’ looking like it will be negated.
For Thursday, prep for a breakout, but don’t ignore an opening gap down as sellers will pounce on the break of what has been tightly coiled action.
