The S&P has taken the first step of a rally to take it back to the supply zone of 2,000. Friday's action was accompanied by a MACD trigger 'buy' and On-Balance-Volume 'buy' trigger.
The Nasdaq cleared its consolidation. Next up is a move to the 50-day MA and then 4,900. Of the technical indicators, only the MACD trigger 'buy' was on record as a positive signal.
Nasdaq breadth improved sufficiently to generate a 'buy' signal, with all four metrics in oversold territory.
The Russell 2000 may have done enough to create a sizable 'bear trap'. Of the indices, it has the greatest potential for upside. Note the relative performance 'buy' trigger against the Nasdaq (and watch for one against the S&P too). Pullback opportunities may offer chances to catch the next upside swing. The 50-day MA/declining wedge resistance is the first upside target.
As a final note, breakouts were also noted in the Dow, Nasdaq 100 and Semiconductor Index:
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 also trade on eToro and can be copied for free.
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