In my last post, which was last Friday, I wondered if the escalating trade war talk would increase over the weekend and affect the markets Monday. That certainly did not happen. In fact, the markets are strong across the board today.
Last week we discussed the S&P 500 chart, which has a very similar look to the Nasdaq; however, the Nasdaq is stronger. As I type this, it is up nearly 1%. What’s more, as you can see in the chart below, Friday’s move above the similar looking congestion in the S&P was very strong and has follow through.
With this type of strength, the small caps will not be the only index making new all-time highs. If this type of buying continues, the Nasdaq (Nas) will be there Tuesday and could have near-term extension to 7300.00 this week, and 7400.00 next week.
The S&P 500 and the Dow will need more help, but buying in those indices should pick up if the Nas continues this action.