Thursday, May 14, 2015

Breakout in S&P and Russell 2000

Is this the breakout markets have been waiting for? Both the S&P and Russell 2000 edged past resistance and the Nasdaq has managed to climb above 5,000, although it's a few days from challenging the high. The S&P needs to follow through higher (very) soon to put this consolidation from February to bed.


The Russell 2000 breakout will have to push past 20-day and 50-day MAs, from where it finished today. One concern is the sharp underperformance of the index relative to the Nasdaq and S&P, but price action is key.


The Nasdaq only has the high at 5119 to contend with and looks ready to trigger a new 'buy' signal in the MACD. It also enjoys an improved relative advantage against the S&P.


Tomorrow is set up for bulls, but will bulls feed at the table?

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

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