Stock Breakout: Stalls At Resistance

No surprise to see the indices stall out at channel resistance. Narrow day range allows for a swing trade on break of day's high/lows. Volume was down, which is inline with a consolidation. Little more to add on the day.

Keep an eye on the S&P, it has underperformed relative to the Russell 2000 for a number of months, but it's finding its groove which should see an upside break of channel resistance.


The Nasdaq is attempting to regain past strength (particularly against the S&P), but it could struggle if money continues to cycle to more defensive Large Caps.


The Russell 2000 lost some ground, but has the cleared support (1,060) and has room to run to channel resistance. It's perhaps the best index to trade longside.


For Friday, look for swing trades in the Nasdaq and S&P, but should markets open strong then the Russell 2000 is perhaps the best buying opportunity.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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