Courtesy of Declan.
It was a generally quiet day for markets with Small Caps feeling most of the pressure.
The S&P took a quarter percentage loss as it gave back a small amount of last week’s gain. There was no technical change on this loss. Nothing to be too concerned about.
The Nasdaq managed to post a small gain which helped boost the technical picture of the index. Key to this index (and the Nasdaq 100) is holding on to the breakout. Today’s action kept this breakout intact and returned a MACD trigger ‘buy’.
The Russell 2000 is the index most feeling the squeeze. The consolidation breakout is under threat of becoming a ‘bull trap’ before the Nasdaq. Any loss tomorrow will likely confirm as such.
For tomorrow it will be again be watching for a Nasdaq ‘bull trap’, alongside a new candidate in the Russell 2000. The S&P could yet break higher despite this, and it would appear critical to do so if the Russell 2000 is to pull back from the brink.
You’ve now read my opinion, next read Douglas’ blog.
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