Morning Report – February 19th, 2014
The NASDAQ Composite closed strongly above the resistance area of 4250 to close at 4272.7798 at 86.53% of its daily range. Just before the closing bell, the index was trading above 98% of its daily range, but some last minute selling pulled it down slightly. Advancers led decliners by a margin of 2.3 to 1 on moderate volume.
During this nearly vertical run in the NASDAQ, selling has been absorbed by the Bulls each time the Bears tried to force the index down. This is readily apparent by looking at the candles, which for the last eight days are green. On most days during the run, the candles closed near the upper portion of their daily range. It is rare that we see a V shaped reversal like the one we have experienced over the past eight days. This angle of ascent cannot continue without some backing and filling, and when that does occur, we will see if the Bulls continue to absorb any attempt at heavy selling. Read Full Report