The NASDAQ Composite Index shrugged off any ideas of resistance at the prior declining tops trendline and instead flashed a nice trendline breakout on Thursday. As I pointed out on Wednesday, the declining tops trendline could just as easily provide a point of reference for just such a breakout as it could overhead resistance.
Low volume accompanied Friday’s continuation move back up to the prior early June highs. But this wasn’t a problem. The fact that the market was sold out as I wrote it might be in last weekend’s report seems to be an overriding force as sellers have been shaken out of the market, leaving nobody left to sell!
We can see that the NASDAQ also posted a double-bottom type of breakout as it cleared the mid-point of the “W” on Friday. This comes after two sharp, ugly sell-offs that just served to shake out all the sellers. Meanwhile, the light volume keeps longs a bit worried, creating its own unique type of wall of worry for the market to climb.
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