The indexes have charged higher as they at least act like the recent breakouts to new highs in the S&P 500 and NASDAQ Composite Indexes may be the beginning of new upside legs in what pundits are calling the longest bull market in history. While that may be true, it’s not as if there haven’t been enough serious downside breaks in the rally to offer some choice short-selling opportunities along the way, such as the sharp breaks in February of this year, January and February of 2016, and August 2015, to name three.
The breakout on Friday gave the NASDAQ wings, as that power drink commercial goes, with a gap higher yesterday and again this morning. Those wings were clipped just a wee bit today as the index closed below where it opened, and volume declined sharply. This gives the index the look of stalling and churning today as it lost some buying momentum.
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