Nasdaq breaks resistance

By Colin Twiggs
April 26, 2019 9:00 p.m. ET (11:00 a.m. AEST)

First, please read the Disclaimer.

Real GDP growth came in at a healthy 3.2% for the 12 months ended 31 March 2019. Growth in total hours worked is lagging below 2.0%, suggesting that further acceleration is unlikely.

Growth in total non-farm payrolls continues at close to 2.0%, minimizing the chance of an interest rate cut by the Fed.

The S&P 500 is testing its previous high at 2940, while a rising Trend Index (13-week) indicates buying pressure.

The Nasdaq 100 broke resistance at 7700, signaling another advance. The long-term target is 9000. Expect retracement to test the new support level.

A rapid advance would outstrip earnings growth, with high earnings multiples warning of elevated risk. The market is quite capable of continuing this behavior for an extended time but I urge readers to be cautious and look for rising sales and earnings to support the stock price.

The market can stay irrational longer than you can stay solvent.

~ John Maynard Keynes

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Disclaimer

Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.

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