8.2 C
New York
Thursday, March 28, 2024

S&P Holds Breakout as Tech Indices Near All-Time Highs

Courtesy of Declan.

Aside from the light volume it was a solid finish to the week for indices. Tech Indices are very close to new all-time highs as the post-Trump rally continued its unabated ascent; the rally in the Nasdaq 100 has even managed to stay ahead even of its 20-day MA.




The only concern for Nasdaq 100 is the loss in relative strength against the Russell 2000, although this hasn’t flipped negative. Despite this, a push above 5,172 is likely to trigger short covering and another buying surge.






Gains in the Nasdaq have been a little slower as it has tagged its 20-day MA a couple of times since November’s election result. As with the Nasdaq 100, a push above 5,669 is likely to attract short covering.





The S&P successfully defended former resistance, now new support, at 2,280. The MACD is holding on to a ‘sell’ trigger, but it’s very close to a fresh trigger ‘buy’.  Given the prior consolidation, this is perhaps best placed to enjoy more sustained gains.





The Russell 2000 had the best of Friday’s action with a 1.50% gain.  The gain was enough to finish the tit-for-tat bull/bear trap and redirected the index to a broad consolidation.  Buyers have defended the 50-day MA; watch for fresh buyers on the pending MACD trigger ‘buy’.





For Monday, the S&P is the index to watch as it works to build a new rally. However, the Russell 2000 could surprise if it can break above 1,380 and out of the 2-month consolidation. Day Traders can look to the Tech Indices to take advantage of short covering.




You’ve now read my opinion, next read Douglas’ blog.





I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for “fallond”.




If you are new to spread betting, here is a guide on position size based on eToro’s system.





Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,453FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x