Chart Updates on the Market
Big news today for the Nasdaq as it was able to breakout to new highs by eclipsing the previous highs set in January, earlier this year. The S&P has yet to do that, but needs to do so, to confirm the legitimacy of the breakout in the Nasdaq. Because the market is so extremely overbought, I am a bit cautious about initiating any new positions than what I already have right now (currently I own BKS and UGI). The market is going to have to pull back some before I get interested in going long any time soon with new positions.
On an intraday basis, I definitely didn't like the end of day sell-off that we had today, and could be a sign that the bulls are getting nervous holding on to their current gains. Hopefull that is not the case, and any pullback that we see going forward, will be done on light volume and in a controlled manner. If that happens, I will definitely add a few more positions to the portfolio.
Here's the charts on the Nasdaq and S&P.
