The S&P finished on its neckline. Any further gain will register as a breakout. As with the Dow, the 50-day MA is just above at 1,951 to offer supply.
The Nasdaq returned a respectable gain without changing the overall picture a great deal. On-Balance-Volume returned a 'buy' trigger, and the index is on the verge of a relative 'buy' trigger against the S&P. Volume was a little disappointing, but additional gains will get the FOMO crowd involved. Real supply doesn't kick in until 4,900.
The Nasdaq 100 actually registered a breakout of its own, although it hasn't made the same strength of move as the Dow did. Today's move was accompanied by a 'buy' trigger in On-Balance-Volume.
The Russell 2000 is still playing to a 'bear trap'. It has room to run before it reaches supply which gives bulls room to play with. For this week, look for a challenge of the January swing high around 1,035.
For tomorrow, it will be about indices consolidating their breakouts and challenging 50-day MAs. Modest losses acceptable, but important they stay around the upper regions of last week's gains.
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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