Just as the S&P did more than one month ago, the Nasdaq too has cleared multi year highs with sights set on much loftier goals of following in the footsteps Dow and taking out all time highs (a long ways to go!).  Yet again, the bulls got what they wanted today.. a dovish Fed and more solid earnings results, which led to a day where the big fellas put more cash (in the tech heavy Nasdaq) to work despite an overstretched market.  Going into tomorrow mornings GDP report, the Nasdaq has considerable momentum but will need to hold above the April highs to keep the vertical ascent intatct.  I think tomorrow’s action will be very telling about where we go from here over the next couple weeks.

I’ve included the weekly chart of the Nasdaq too, which provides a better look at the overall volume/price trend and indicates some hesitancy on the part of buyers in the past couple weeks.  By the end of the trading tomorrow, we’ll know if the Nasdaq puts in a 3rd week of weakening action.  I have a feeling we may run at the the open and sell off in the afternoon.. we’ll see!