A technical bull market was achieved within the past hour as the NASDAQ Composite (COMPX) 1,525 +1.44% broke above its December relative highs of 1,521.44 and now has in place a series of higher highs and higher lows, something the NASDAQ Composite hasn't been able to achieve in just over 3-years that fateful day on October 18, 2000, when the NASDAQ Comp pierced below its May 24, 2000 low of 3,042.66.
Just as the brief pierce below the 3,042.66 level did find a rebound back near 3,500 two sessions later, equity bears pounded their fists on the table, exclaiming the "downward trend was in place!"
Today, bulls will pound their fist with bullish thoughts of longer-term enthusiasm, as the tables now look to be turned.
The break comes ahead of today's FOMC decision on interest rates, which many Fed watchers believe will not change their stance on interest rates and leave the Fed fund rate at 1.25%.
NASDAQ Composite Chart (COMPX) - Daily Interval
While the break higher looks fractional, its no different than the fractional break lower on October 18, 2000 when the NASDAQ Composite pierced its May 24th low of 3,042.66 by 16.55.
Assessment of further technical upside has me taking my "base retracement from the October low to December high and simply "stacking it" or "rolling it higher, which give us a new upside target of 1,599.69 (say 1,600). While the Bullish % charts are show market internals building strength in recent months and deemed longer-term "overbought," today's ability for the NASDAQ- Composite certainly builds longer-term bullish trend.
The "stacked retracement" and new 0% at 1,933.70 ties in nicely with the March 8 and 11, 2002 rebound highs and most likely serves as a longer-term bull's target (12 to 18-months).
Within the past few minutes, the larger capped NASDAQ-100 Index (NDX.X) 1,156.70 +1.79% "confirmed" the broader NASDAQ Composite trade with a break above its December highs of 1,155.68.