The major indices posted some solid gains this week, with the higher risk Nasdaq Composite greatly outperforming the blue chip indices.  Before we join the bulls and declare this as proof that the market has bottomed, let's take a look at the broader market indices.

The Nasdaq 100 is the clear leader as demonstrated by its breakout over the downsloping trendline off of its November 4 high, but also note that there are multiple cycle dates that come into play in the February 13 and February 19 - 22 time periods.  This means that should this rally attempt comtinue, we can expect some turbulence in that timeframe.   



Now let's take a look at the NYSE Composite Index which is much more broad based.

As you can see, this index is in a much weaker position.  It has just now pushed up to tag its 50 day moving average, and it is also very far below its version of the downsloping trendline off of its November 4 high.  These are clues that this rally may not be as powerful as the bulls would have us believe.   Also note the multiple time cycles that converge in the Feb 17 - 20 timeframe.  This is another indication that any rally may be short lived.  I would like to see a spirited rally here, and we may be on the verge of our first sustained upside move since last summer, but the broader indices are not too convincing. 



The bottom line here is that while the rally in large cap tech has been impressive, the broader indices are not showing the type of strength I would like to see to jump fully on board.   Today's move may have been nothing more than short covering as the leaders were beatne down financials and home builders.  Monday should be interesting with a bank bailout package announcement due, so we will see if this move higher can continue.