Courtesy of Declan.
Indices spent little time consolidating, adding to the rally after a one-day stall in the advance. The Nasdaq is in the process of challenging the right-hand-side of the head-and-shoulder pattern. It hasn’t negated it, but today’s gain is doing its best to do so. Volume was lighter, which doesn’t help bulls.
The S&P pushed itself further away from support, maintaining the breakout and technical strength, but as yet, not enough to reverse the relative bear switch against Small Caps and Tech.
The Russell 2000 expressed a narrow doji on the 50-day MA, although I would view this as bullish in light of the recent decline. Today’s narrow range is a good place to enter a swing trade with a break of high/low with a stop on the flip-side. Technicals side with bulls, even if the index is underperforming relative to the Nasdaq.
For tomorrow, the Russell 2000 may be the index to trade, although honorable mention to the Nasdaq 100 which is about to break to new highs. For the latter index, look for a handle or tight sideways consolidation off resistance for entry opportunities.
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