The Nasdaq looks ready to break from its channel. Today registered as an accumulation day with a fresh MACD trigger 'buy'. There may be room for a rally back to the 50-day and/or 200-day MA (or 4,900). Beyond that and things may get more difficult.
The S&P registered a 'buy' trigger in the MACD, but not the volume to record an accumulation day. The move back to 1,947 sets up for a double bottom, but it's 2,000 which is the real level of interest.
The Dow is running a little ahead of the S&P. Gains tomorrow puts it into the upper level of its 2016 consolidation. However, 16,500 is the real resistance level.
The Russell 2000 is looking to build a relative advantage. Getting back inside its prior wedge consolidation would be a start. There is a healthy bullish divergence in the MACD with a matching 'buy' trigger.
The easier path from here - given the deep oversold nature of the market in 2016 - is probably higher. The question is how well markets react once they get back to their respective 200-day MAs. Look to individual stocks for value.
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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