The S&P was nestled against a 3-way of resistance, but that ended today. It still has to get past 2,135, but it's nicely set to challenge this level Friday.
The Nasdaq was another index to break to new highs. It cleared resistance and continued its relative leadership to the S&P, but not the Russell 2000. However, there were fresh MACD, +DI/-DI and On-Balance-Volume 'buy' triggers to go with the breakout, which returned all technicals net bullish.
Tomorrow is another chance for bulls to press their advantage, further squeezing any left over shorts. Traders can look to the Nasdaq and the Russell 2000 to press on. The S&P should benefit if the latter indices gain, but the S&P might be the canary in the mine if bears look to mount a fresh line of attack. Having said that, the indices now have their most bullish alignment in relative performance: Small Caps leading Technology leading Large Caps.
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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