As a follow up to yesterday’s Nasdaq100 conversation, I wanted to add a few of more charts into the mix. In the post that I put up over at Marketwatch.com, we discussed a few of the major components that make up $QQQ, specifically, $AAPL, $CSCO, $INTC, $ORCL, and $MSFT. I could have kept going, but didn’t want to overdo it.
But hey, this is America, let’s overdo it. Here are 3 more for you:
The first one is Amazon ($AMZN): quick and simple. We’re going to put this one in the $AAPL category – both charts go from the lower left to the upper right. Tough to argue with.
The second one is a little bit more special. Google ($GOOG) has always been near and dear to my heart. Look how many times this $600-$625 level has been tested since 2008. That fixed level gives us a key area to watch for a breakout. Notice the higher lows that have lead up to the most recent tests of resistance:
The last one (I promise) is Qualcomm – $QCOM – this stock has been stuck in this 20 point range for about 6 years. You want to talk about a base? This stock has really been pushing the upper limits of the consolidation lately almost begging to breakout. Watch this one closely:
And there you have it folks. Do you want to know why the Nasdaq100 has the potential for a nice breakout from here? Because all of its major components are confirming it. Maybe it happens soon, maybe it takes one more test, but the set up is certainly there. Yesterday, we saw a ton of traffic coming from this particular post and I’ve never received so much hate mail. Almost no one agrees and most people think that I’m crazy for even hinting that the Nasdaq100 could go higher.
We’ll chalk that one up as another bullish sign for the Nasdaq. Thanks for the confirmation fellas.