Wednesday, May 09, 2018

Breakouts For S&P and Russell 2000

The S&P, Dow Jones Index and Russell 2000 all delivered clean breakouts on bullish technicals.

Best of the Breakouts was probably the Russell 2000.  The only disappointment was the relative loss against the Nasdaq. However, the index is ready to challenge January highs and resume the prior bullish trend.


The S&P edged its breakout on lighter volume. It too has weak relative performance to reverse not to mention a near swing high of 2,717 to break.  However, the 200-day MA has played well as support and should be good to continue doing so over the coming weeks.


The Dow Jones also managed to post a breakout from its downward channel and a small 'bull flag'. It too has successfully defended the 200-day MA as it looks to resume its advance.


The Nasdaq had already delivered a breakout and was able to add to this move. In good news for the nascent breakouts for Large and Small Caps it was able to deftly surpass the April swing high on higher volume accumulation.


Tomorrow is about defending the breakouts after a sequence of gains - time for some downside and a test of the robustness of these breakouts.

You've now read my opinion, next read Douglas' blog.

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Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.  I invest in my pension fund as a buy-and-hold.
 
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