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Chart trader: Nasdaq breaks out, others to follow

John Kosar, director of research, Asbury Research

A onetime bull market leader did something significant last week and that should be good news for everything from chip stocks to transports.

Last week’s breakout higher in the Nasdaq composite index from 10 weeks of sideways investor indecision suggests that the index’s larger October 2014 advance is resuming. I’m targeting an additional 4.5 percent rise for the Nasdaq.

In addition to the bullish chart action, a recent inflow of investor assets to the PowerShares QQQ ETF should support the push higher.

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