The Nasdaq posted yet another day of gain - its sixth such day in a row. Volume was down, so today didn't register as an accumulation day, but it kept the index away from breakout support. The probability of a 'bull trap' occurring looks very low.
The Russell 2000 was able to claw back from swing lows. The index is trading near support, but is really caught in a trading range between 1,355 and 1,390. Given this - and prior action into this range - probability favors a continuation breakout higher. Can it deliver?
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.