The S&P maintained bullish technicals as it added a few points to yesterday's gain. A push to challenge 2,140 looks well on the cards.
What could hold things back are Tech indices. The Semiconductor Index had a weak day with over a 1% loss. Relative performance continues to fall off sharply.
Because of weakness in Semiconductors, the Nasdaq and Nasdaq 100 suffered relative distribution, but these indices are caught in a no-mans land.
The Russell 2000 is caught in the middle with its reversal doji at channel resistance. However, it's enjoying strong relative gains. A consolidation from here back to rising channel support would offer bulls a strong footing to mount a challenge on breaking the 200-day MA and for a move to 1,200s.
For tomorrow it will be about which side wins out. Large Caps attracting more buyers in a push to new highs, or Tech taking further losses.
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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