Breakout to new all-time highs for NASDAQ and DJ Transports

Equity trends remain bullish from early August but structurally are growing closer to upside targets that might produce a stalling out into next week. While Wednesday’s post-election surge produced a multitude of breakouts of various triangle patterns on numerous stocks and indices, the lack of broad-based strength was a bit troublesome for today into tomorrow’s FOMC meeting.   The US Dollar and US Treasury yield both screamed higher but should be vulnerable to weakness post-FOMC meeting, and peaks in both look near. Overall, while it looks early to attempt to fade a one-day rip back to new all-time highs for Equity indices, it’s worth just keeping a close eye on momentum and breadth into next week as Equities near the 3-year anniversary of their all-time highs from 2021.  SPX is now near its 5950 level, and it’s thought that 6,000 should be effective resistance. QQQ has exceeded its prior highs and could move to 510 into early next week before finding a new level of resistance.

I discussed these two points earlier this week in my reports:

  1. My expectation is for a rally post-election, but one which disappoints in the degree of broad-based strength over the next week. 
  2. Evidence of the gap at SPX-5811 being filled and exceeded would then point towards a move to 5950 in all likelihood.

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