Subscribers Special Report Via -TradesAfterWork6/7/2020Posting this to share with our readers: (We really like these Weekly Technical Briefs by TaW). This is a daily chart of the Nasdaq Composite Index. The Index has been the leader in this rally since the March 23rd low and is now the first index to break above its previous highs in February. There is no doubt this is "put up or shut up" time as we are right at resistance. The Stochastics, as noted below, are overbought at 93.93%. The reason I put the question mark behind "Stochastics Overbought" is that the market can continue to stay overbought for some time. The same thought applies to the Relative Strength Index (RSI). Stochastics are considered overbought with anything over 80%, and the RSI is considered overbought once it reaches over 70%. This is a pivotal time since both indicators are overbought, and we are right at resistance. The Index needs to close above its previous closing high, hopefully on powerful volume. That can demonstrate that supply or sellers has evaporated. The index has been a little weaker on price action the last couple of weeks; the next two charts will tell you why. The Dow Jones Industrial 30 is very interesting. Up till now the Dow has proven to be the lagging index of the three major indexes. Now the Dow has finally broken above its 200 Day Simple Moving Average, the last of the three indexes to do that, and it has led the market the last 2 weeks. What a change. What might that indicate? That we may be seeing some real sector rotation into the industrial stocks like 3M ($MMM), McDonald's ($MCD) and Boeing ($BA). This is healthy action. This also allows some of the previously stronger tech stocks that led this market up to rest and have a typical pullback to their 50 Day SMA. The Dow is also overbought with the RSI above 70 and the Stochastics above 90. Unlike the Nasdaq Composite Index though, the Dow has still not climbed back to its primary February resistance. The S&P 500 Index has been closing above its 200 Day SMA for several days now, and has improved in its price action, too. It has also led the Nasdaq Composite Index in the last 2 weeks, but has not outpaced the Dow Jones 30. The likelihood of this index getting to its pre-Covid-19 high or at least to its resistance line has improved considerably. The rotation of new industries and stocks fueling this rally can really play out well for the market and for the many people that have their 401(k)'s and retirement accounts using the S&P 500 Index as their benchmark. If the S&P 500 can continue to outperform and lead the Nasdaq Composite Index and the Dow Jones 30 it would be a much healthier market for John & Mary Public. The continued pumping of stimulus into the market by the Federal Reserve may make this happen. If you are wondering how the Bullish Percent Index for the Nasdaq 100 (QQQ) looks this week, here it is. We no longer see the Bullish Percent Index giving lower highs and lower lows. This past week the Bullish Percent broke above resistance at 80% and discontinued the lower highs. This means that more buyers (X's) are coming into the market than sellers (O's). Now we will get to see if we can break down the previous trend of lower lows, and have a higher low. The new point & figure pattern is now more bullish. Can this be quickly reversed? Yes, but the odds are in favor of the bulls and we want to always keep the odds in our favor.If you have any questions or I can be of any assistance please don't hesitate to contact me.Take Care! 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