In the last few weeks the bears have had every opportunity to press down the market and each time the market held its own, showing superb resilience. We're still range-bound but we have a feeling that that will change soon enough. As always, it's a wise idea to take a look at what the leaders are doing. Who are the leaders of this market? Well, to start out with, the five horse-men of 2006: RIMM GOOG BIDU AAPL AKAM
RIMM is without a doubt the leader of the momentum group and could not act any better. 115 was the recent breakout and look how well she held that number, even through recent market weakness.
BIDU has recovered nicely and can potentially set-up very well for a swing-trade if she can consolidate a bit more under this 100 area.
GOOG is looking good and looks set to break into new highs.
Look how well AKAM resurrected herself. Only last week she looked uber-bearish, hugging the bottom of her pennant and closing under her 50dma. However, she never broke down and bounced off her support like a champ.
This next little while should take us out of this recent range and hopefully set-up some great chart patterns. And one more thing to add: as bullish as these charts look, we're also aware that often these kind of posts from traders showing the "great leader action" can also mark the absolute top of a market. Let's see which one it turns out to be: as always, we'll react and not anticipate.