Major indices close with solid gains and near highs.

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On March 14, the Nasdaq closed below the February swing low at 12587.88 and reached a new low for 2022 at 12555.35. Since then, the price has moved up 12.41%. The S&P index is up 8.35% over that time.

The moves to the upside comes amidst a rise in 10 year yields from 2.02% to 2.39% currently or 37%.

The correlation with yields and the Nasdaq has flipped entirely around as investors are either getting squeezed, AND/OR the hope is that higher yields means continued strong economy despite the headwinds from higher rates and inflation .

The market may also discounting a solution to the Ukraine war which would be a positive if it frees up the oil and other commodities.

As the seasoned Wall Street traders like to say “Don’t fight the tape”.

Despite the gains in the NASDAQ, the price had been beaten down, and the rise in that index is still on the lower half of the high to low range since November.

Looking at the daily chart below, the price yesterday moved to a high near the 38.2% retracement at 13952.28, but backed off. Today, the index opened higher and continued higher.

The next target comes in at the 14163.73 to 14181.69 (swing high from February 15 and the swing low from going back to October 4, 2021). A move above those levels would next target the midpoint of the range since the November high at 14383.79. Get in the upper half and the technical picture is more brighter – despite the run up in yields.

For the S&P index, it moved and closed above the 200 day moving average at 4473.11. It also moved above and closed above the 50% of the range since the the January all-time high near that midpoint level comes in at 4466.64. The next target comes in at the 100 day MA at 4549.62.