Nasdaq continues to lead

The Nasdaq continues to lead the way and this is good for bulls. The Dow and S&P are lagging but I would wager that they are being held back by commodity stocks. The Nasdaq is up at resistance right now, and it has yet to clear the November high. With commodity stocks pretty oversold, I expect a bounce which should help prop up the large caps.

A reader (Scott K.) had asked for a look at AOB and ASIA. My apologies for the delay in responding.

ASIA is looking pretty good after clearing the recent consolidation. I'm not sure I would be chasing it, but I wouldn't be looking to sell unless it dropped back into the previous base.

AOB has been on a tear and just cleared a continuation pattern, so the evidence is pointing to higher prices. This one may offer a decent chance to get in for a swing if it pulls back to the ascending trendline and / or breakout area, but keep in mind it has had a nice run and is showing divergences. It just made a new high which was not confirmed by RSI, MACD, or Stochastics. This is warning that the rally is a little long in the tooth.
Good Luck,


DT