Nasdaq May Be the Third Major Stock Index to Cross Its Red Line


Editor's Note: This article was originally published in John Murphy's Market Message on Friday, February 15th at 12:40pm ET.

Charts 1 and 2 show the Dow Industrials and S&P 500 building on their gains after rising above their 200-day averages (red lines). Both now appear headed for a test of their early December peaks. Chart 3 shows the Nasdaq Composite Index in the process of testing its red line and its December high at 7486. A close above both barriers would be a positive sign for the Nasdaq and would strengthen the market's uptrend. All eleven sectors are in the black today. Financials, energy, healthcare, and industrials are leading the day's advance with gains of 1% or more. Small caps are also showing more leadership. That may be due to recent strength in the dollar which usually favors smaller stocks. Banks are leading today's gains in the financial sector.

Chart 1

Chart 2

Chart 3

John Murphy
About the author: is the Chief Technical Analyst at, a renowned author in the investment field and a former technical analyst for CNBC, and is considered the father of inter-market technical analysis. With over 40 years of market experience, he is the author of numerous popular works including “Technical Analysis of the Financial Markets” and “Trading with Intermarket Analysis”. Before joining StockCharts, John was the technical analyst for CNBC-TV for seven years on the popular show Tech Talk, and has authored three best-selling books on the subject: Technical Analysis of the Financial Markets, Trading with Intermarket Analysis and The Visual Investor. Learn More
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