Confirmation on the Breakout
By James Dondero | February 26, 2015
- Stocks remain strong, with indices such as the Value Line and Russell 2,000 Small Cap Index now confirming last week’s breakout in the S&P and NASDAQ. While volume has been on the light side and all could certainly pull back and test their breakouts, this strength may be bullish longer term.
- Yields however, continued to battle at important areas of resistance on the charts. 2% to 2¼% on the 10-yr. US T-Note is an area investors have chosen to buy bonds in the past, and doing so again here could take money from stocks, and help the averages noted above test their breakouts.
- Finally, the overseas markets remain mostly positive as well, with those in Europe, Japan and India the most bullish. This strength has finally spread to China, with the FXI (China Large-Cap 25 ETF) ‘breaking-out’ this week.
The views and opinions expressed are for informational purposes only and are subject to change at any time. This material is not a recommendation, offer or solicitation to buy or sell any securities or engage in any particular investment strategy and should not be considered specific legal, investment or tax advice. There is no guarantee that any of the forecasts will come to pass. Past performance is no guarantee of future results