95% of the QQQ component stocks rose on Wednesday as the QQQ (Nasdaq 100 index ETF) reached the 27th day of its short term up-trend. The weekly chart below shows that the QQQ has again broken out, violating the possible head and shoulders top pattern I have been describing. After a severe market decline like we had in 2008, people get very scared of the market. They tiptoe back into the market focusing on the “safer” more conservative large cap, blue chip stocks. After the market rises for a long period they take their profits, grow more confident, and buy the more speculative growth stocks. I would therefore not be surprised to see the tech stocks take over the leadership of the market in coming months. On Wednesday, 95% of the Nasdaq 100 stocks rose, compared with 71% of the 5,800 stocks in my database. IBD has now changed its market outlook to reflect the resumed up-trend. In the meantime, the media pundits keep trying to scare people out of the market, enabling it to climb a “wall of worry.” I would become more cautious when they eventually feel confident enough to proclaim that the market rally is here to stay.