Technicals Indicate Nasdaq On The Verge Of A Bullish Breakout

Technical analyst Gary Savage takes a look at the recent quadruple breakout test of the Nasdaq Composite index, and concludes that the index will likely break further to the upside soon — and the other major averages will almost certainly follow suit.

Yesterday brought us new all-time closing highs in the Nasdaq. This marks the fourth test of resistance.

While double tops are not uncommon, quadruple tops typically are extremely rare.

When a resistance zone gets tested multiple times, it usually breaks. It shouldn’t be long before the Nasdaq breaks through this resistance. After it does it will pull the rest of the market up with it.

The PowerShares QQQ ETF (NASDAQ:QQQ) rose $0.13 (+0.1%) in premarket trading Friday. Year-to-date, QQQ has gained 11.99%, versus a 5.28% rise in the benchmark S&P 500 index during the same period.

QQQ currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Large Cap Growth ETFs category.


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