Indices are still holding to their (pending) breakout, although the Semiconductor Index SOX is playing the primary lead as it keeps its head above water on net bullish technicals.
The Nasdaq had registered a breakout, but Thursday’s losses (on light volume) took it back to breakout support. The breakout hasn’t been violated – yet – but another day’s loss will kill it and leave a ‘bull trap’. Unlike the S&P, technicals are not yet net positive.
The Russell 2000 (IWM) continues to trade below breakout levels, but is knocking on the door of higher prices. It registered a higher volume accumulation day, but it hasn’t yet fulfilled a new ‘buy’ trigger in the MACD, but is close to outperforming the Nasdaq.
The S&P started the day above its breakout level, but ended the day below it. Watch for a test of the 20-day MA where buyers can be expected to step in. It too is waiting for a new ‘buy’ trigger in the MACD.
So, heading into tomorrow we remain in much the same predictament we have seen the past few days; waiting for a substantial breakout to clear the consolidation.
More By This Author:
Bulls Make Their Move On Nasdaq Mini-Breakout
Strong Open Fades Into The Close
Gap Reversal But Not Oversold
How did you like this article? Let us know so we can better customize your reading experience.
