Charting the Markets: Why the Nasdaq 100 Could Be the Next Leader
Seasonal weakness is just about gone and tech could provide good motivation.
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As we plunder our way through a challenging month of September, there are less than two weeks remaining before we hit the new month. If it seems I am anxious for the month to finish you would be right. Chop, chop chop and more chop is all we have experienced. However, there are a few rays of sunshine that could be seen, starting with the Nasdaq 100.
This index was beaten up badly in the spring but managed to forge its way to a relatively strong buy signal by the summer. The trend has held up and the indicators have also reflected bullish strength.
The only problem we see here is a lack of strength or momentum, and volume trends are not bullish. This can all change, of course, in the scope of a couple of sessions.
Leadership from technology names will change sentiment drastically. No question, the sentiment recently has been poor, with the AAII survey showing only 28% bullish last week. That would cut it, but as a contrarian indicator it may be flashing buy.
Heading toward a new month, the Nasdaq is trying break out to a new high again, and the strong outside week is a good start.
