Stocks Are Extended, but Don’t Look For a Sudden Collapse

The Nasdaq 100 has enjoyed a rally of almost 9% from the lows hit in October and has had seven straight positive days. The entire market has enjoyed robust gains, but the Russell 2000 has been lagging, and that has caused breadth to lag. On Tuesday, with the Nasdaq 100 up around 1%, breadth was negative, and there were more new lows than new highs.