Nasdaq Update

I recent post at Downtown Trader reminded me that I needed to take a look at the Nasdaq chart.

It is insane that I haven't really studied the chart in the last week or so. It was like coming back to a good book.

Surprisingly, the composite index closed above resistance today. Volume was not all that great, and the divergence between price and volume is in my estimation one of the most reliable indicators. However, I am pleasantly surprised at the strength the index is showing while hanging out so high above the 20 day moving average. If the companies reporting first in the new earnings season can keep from disappointing, I feel it is conceivable that the Nasdaq trades sideways for a bit, which would allow the moving averages to catch up without some serious retracement days.