Still Chugging Along

Despite multiple opportunities for the broad market to roll back over from an obvious confluence of potential resistance levels (the 50-day simple moving average on virtually all of the major index charts, retracing up to range from late-last year from which we broke down in December, the big, rough 2,600 level on the S&P 500 Index, etc.), the broad market continue to hang in there, with green small caps and Nasdaq stocks as write this to offset the Morgan Stanley earnings selloff. 

As we have discussed with Members, the large banks like BAC C GS JPM MS, good or bad earnings reactions, were not likely to be as significant as some of the earnings reports approaching in growth names. Two examples actually take place this evening, with NFLX and software growth up-and-comer TEAM both reporting. I would view those reactions and subsequent pin action among tech plays as a better measure of where this market is as we head into a three-day weekend with Dr. Martin Luther King Jr. Day on Monday. 

On a shorter-term timeframe, gauging the 30-minute chart of the QQQ ETF (for large cap tech stocks), below, even with the overall price action a bit slow and boring the last few days we seem to be building towards the apex of a tight triangle consolidation in the context of the rally since Christmas.