Courtesy of Declan Fallon
The Nasdaq dug its heels at 2,900 on lower volume helped by decent technical strength.
Lending weight for a continuation of the Tech rally is the swing low in the Percentage of Nasdaq Stocks above the 50-day MA. A similar pattern emerged in 2010 which was the basis for a new reaction high in the Nasdaq.
The Russell 2000 was able to find support at the former neckline head-and-shoulder pattern, turned support.
While the S&P positioned itself for a challenge on 2008 highs.
Although the concern is a swing high in the Bullish Percents, which suggests lower prices ahead for the S&P.
There is a bit of a divergence in market breadth; S&P breadth is pointing towards a top, while the Nasdaq is favoring a trade-able bottom. Despite this, further gains would appear to be favoured given the strong position of the Nasdaq and S&P.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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