This is an abridged version of our Daily Report.
Tech breadth remains impressive
A few major Tech stocks get all the attention, throwing a shadow over all the other members. So far this year, the sector is showing some of the best breadth readings since 1990, with broad participation.
Even if there was a negative divergence with breadth, it would not be a good reason to sell.
Buyers finally close
For the first time in weeks, buyers have persisted in closing the regular trading session near the intraday high. Prior to Wednesday, the S&P 500 futures closed in the bottom 76% of their range for 14 straight days.
When a streak of poor closes was ended by a close near the top of the range, it led to further gains.
The Nasdaq 100 fund, QQQ, enjoyed a 2% rally on Thursday and thanks to a good reception to after hours earnings, is on track to gap up more than 1% on Friday morning. In its history, it has gapped up 1% the morning after a 2% rise 73 times, with its most consistent performance being a week later, when it added to the gains 26 times (a 35% win rate).
Our shortest-term STEM.MR Model closed above 90% on Thursday, suggesting an abnormally large surge in ultra short-term optimism.
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The post titled Nasdaq Breadth Is (Too) Good As Buyers Finally Persist Intraday was originally published as on SentimenTrader.com on 2018-04-27.
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