Courtesy of Declan Fallon
Markets maintained their weekly form despite the recovery on dailies. The Nasdaq still has to contend with the bull trap from 2,818. Last week’s buying – while welcome – didn’t registration as an accumulation week.
via StockCharts.com
However, the Nasdaq 100 was able to defend 2,217 (2007 highs). But like the Nasdaq buying volume was light.
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While the Russell 2000 rallied off its bull flag backtest and is best poised to move to new highs.
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The S&P pulled itself back over 1,300, but the rally has sliced the channel down the middle – no advantage to bulls or bears.
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So for next week looks to Small Caps to lead out with the Nasdaq 100 and Nasdaq following suit. The latter should negate its bull trap. Large Caps should be able to tag along for the ride, but look to them to lag the more speculative issues. If the Russell 2000 struggles then it’s going to be hard road ahead for all the indices.
