The S&P has a created a small, rising wedge off a larger rising wedge from September. The 20-day and 50-day MAs lend additional overhead resistance as does higher volume distribution for the index today (although the trading range for the day was very narrow).
The Nasdaq hasn't got the earlier bearish wedge as evident in the S&P, but it is mapping a mini-wedge like the latter index. Technicals are mostly negative, although stochastics [39,1] are rebounding off a level typical of a bullish reaction.
The one index doing its own thing is the Russell 2000. After coming off what had the look of a very bearish 'bull trap' breakout, the index has been able to dig in at early September lows. There is a relatively low risk opportunity for longs with a stop on a loss of 1,200.
For tomorrow, bulls should keep an eye on the Russell 2000 - early strength could bring buyers back to this neglected index. Shorts will be looking to the rising wedges to jump on the quick if there is an early breakdown.
You've now read my opinion, next read Douglas' blog.
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Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.