Weekly Market Commentary: Slows as Resistance Approaches
With the slowing in the up trend it might be a quiet couple of weeks. The watch areas remain Fibonacci retracements with the first test of 61.8% so far a success but two more remain to challenge on future weakness.
The Russell 2000 has a large trading void to fill. The void is made all the more enticing with stochastics well off oversold conditions; 614 support down to 592, the first Fibonacci level, are the watch areas.
So while markets are slowing their weekly advance, supporting breadth indicators continue to expand in bullish strength. More importantly, there continues to be room for breadth indicators to rise which suggests markets will push higher soon. Bulls will need all of this underlying buying impetus to crack past 'bear flag' highs on kill the declining bear trend from April.
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