Courtesy of Declan.
There wasn’t much to add to yesterday’s action. The S&P closed with an indecisive doji, but given the context it was really a non-day with no advantage to either bulls or bears.
The Nasdaq posted yet another day of gain – its sixth such day in a row. Volume was down, so today didn’t register as an accumulation day, but it kept the index away from breakout support. The probability of a ‘bull trap’ occurring looks very low.
The Russell 2000 was able to claw back from swing lows. The index is trading near support, but is really caught in a trading range between 1,355 and 1,390. Given this – and prior action into this range – probability favors a continuation breakout higher. Can it deliver?
For tomorrow, bulls have done a good job in pulling the Russell 2000 back from the brink and putting some distance for Tech indices from breakout support. Only Large Caps were quiet. Look for a continuation of this action as junior traders give way to their more seasoned campaigners.
You’ve now read my opinion, next read Douglas’ blog.
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