The S&P tagged resistance from the October and November swing highs as it finished the day with a neutral doji. Short term (buyers) will take profits here and aggressive shorts may try to attack the bounce but long-term investors can hold for another move lower before adding.
The Nasdaq was able to clear Oct-Nov resistance, albeit on a 'black' candlestick - which is not the most bullish of setups. However, it's good news for those looking for similar moves in other indices. Volume climbed in accumulation - another positive sign. And there was an upside tick in relative performance against the S&P. If there is to be some follow through upside then this is the index to watch.
The Russell 2000, as the underperforming index, had a smaller gap open but it was able to add to the early gap and close with a solid white candlestick. The index is still underperforming against Tech indices and it hasn't yet reached Oct-Nov swing high resistance. However, this looks likely tomorrow. Technicals remain mostly on the bearish side.
The Nasdaq 100 tagged declining resistance of Oct-Nov swing highs as technicals returned net bullish.
For Tuesday, look for some upside follow-through - particularly from Tech indices. Aggressive shorts can work the S&P as it tags clear resistance.
You've now read my opinion, next read Douglas' blog.
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