Nasdaq Composite Index (2256)

We finally pushed above the 2200 resistance barrier that I have been talking about since last May, but my unique price momentum models have suggested that we ran out of gas as we did so. There may be an explanation for this lack of enthusiasm about what would otherwise be considered a meaningful breakout. Since early 2004, we have witnessed a succession of modestly higher highs as the index struggled with what I had labelled as resistance at 2200. The latest upthrust was another in this succession of higher highs, only this time it took us above 2200 for the first time.

So far, I don't have a short term sell signal, but we are overbought both short and intermediate term, so it looks to me like either a pause or a correction ahead on the near term. Beyond the near term, I'm still satisfied with bias neutral.