Except for the fact that today is a Friday, when some fraction of the short-term speculators tend to close out positions in advance of the weekend when anything can happen, NASDAQ is finally getting ready to put a lot of the recent anxieties behind it. We've had plenty of time to resolve anxieties related to the Fed meeting that ended the QE buying program and the election results are mostly accounted for, and rate hikes are "many months" down the road, so finally people can focus once more on economic and business fundamentals.
The economy really is okay, continuing to incrementally improve almost every day, even if the measured progress is a bit rocky at times. Maybe not "clear sailing" yet, but pretty darn good as compared to the rest of the world.
NASDAQ did try to "test" the psychological 4600 level again yesterday and the market held up, so that is yet another good sign. And there was some clear buying through the afternoon and into the close, which is another good sign. I mean, if hedge funds needed an excuse for a larger selloff, they clearly missed that boat in the morning when the market was shakier. In short, we really are poised to establish a clear breakout and new leg up from the earlier broad trading range. That's not to say that this is a slam-dunk certainty, but simply that it is a realistic possibility.
Oops... I forgot to pick up some more Qualcomm (NASDAQ:QCOM) on its big dip yesterday.
-- Jack Krupansky
Disclosure: The author is long QCOM.