The Russell 2000 also pushed on to confirm a new 'bear trap'. The original 'bull trap' at 1,388 hasn't been negated yet, but this could happen tomorrow as could the MACD trigger 'buy'.
The Nasdaq added nearly 1% as it posted an accumulation day, building on the initial breakout from yesterday. It offered the clearest state of intent from bulls.
The S&P was not to be left behind as it enjoyed a second day of accumulation in a row. However, it did experience a drop in relative performance against the Russell 2000.
For tomorrow, indices are well placed to continue their advance. Shorts have little to work with while indices post new highs. It would take a two-bar reversal to offer the potential for a top and this doesn't look likely given how these indices have emerged from consolidations
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.