NASDAQ Regains Leadership

03/02/2010 9:04 am EST


Thomas Aspray

, Professional Trader & Analyst

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Powerful action in the stock market Monday as the NASDAQ closed up over 1.5% and has once again regained leadership. The RS chart (in purple) has moved above the January highs, which is very positive and suggests a move above the prior highs with targets at 2350. The NASDAQ A/D line is still lagging the price action as it has formed lower highs. This downtrend should be overcome this week, but if the NASDAQ does make new highs, the A/D divergences will be more pronounced.

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