Courtesy of Declan.
There were small gains, but again it was the Semiconductor Index which had the best of the action. It inked a second, modest breakout, but there is still another declining resistance level to go before it starts challenging highs. Watch for a MACD trigger ‘buy’.
I slightly readjusted the head-and-shoulder neckline of the S&P so it remains below resistance. However, some may consider the rally a breach of this resistance level. Next up is converged 20-day and 50-day MA.
The Nasdaq touched channel resistance (which is also near the 50-day MA), but didn’t break it. Tomorrow may be the day it happens.
The Russell 2000 is also inside its channel, but finished with a small down day. Tomorrow could also deliver a breakout.
For tomorrow, it’s a question whether bulls can deliver across the board channel breakouts. Bears could go aggressive, but they wouldn’t want to hold if channels break. The semiconductor index already has edged its way into a breakout, so it’s the index to watch for leads.
