Momentum Continues

Scans today suggest that the underlying bullish trend continues to have momentum. Pull backs in some areas now appear to be feeding breakouts in other areas. We are finally getting some decent pattern set ups indicating that buyers have been accumulating second tier stocks during the run ups of first tier stocks like Rambus (RMBS). Considering the fact that the NASDAQ has overhead channel resistance just above its current price, we believe that a run higher prior to a pullback would be bullish as it would set up a higher level of support. Nevertheless, with prices as extended as they are, anything could happen here so it is better not to project wants into the market and take a wait-and-see position.