Jun

23

2004

Here We Go!

We got it all today. The price movement, the close at the high, the volume, the break through resistance, the participation of technology and leading stocks leading the way. It all led to a day of accumulation as institutions began to put money to work. It was the kind of day we have been waiting for and it signals that significant upside remains in the market. Today, it was the Nasdaq that led the way and broke through major resistance of the convergence of the downward trend line and 2,000 (a psychological level).

Over the past few weeks the Nasdaq has been getting squeezed between support of the convergence of the 50 & 200 day moving averages and resistance of the convergence of the downward trend line (in blue) and the important psychological level of 2000. It had to give eventually and today it did… to the upside! It signals the OK to become a bit more aggressive in buying leading CANSLIM stocks.