Weekly Market Commentary: Gains But No Breaks
Only the S&P gave a hint of a possible breakout on the weekly chart. If the breakout is true (i.e. can hold above 1,300) then the next upside target is 1,440.
The Nasdaq is still hemmed in by resistance at 2,818
While the Nasdaq 100 enjoyed a renewed push higher, trading well above 2,217 support
Market Breadth ran contrary to gains in the Nasdaq. There were losses in Nasdaq Bullish Percents and Nasdaq Summation Index - although losses were small - they suggest a larger correction is required to take the heat out of the market.
The Russell 2000 is well above 760 support and is forming what looks to be a 'bull flag'.
Markets on weekly timeframes haven't changed a great deal. There is perhaps a fresh breakout in the S&P to join the breakouts in the Nasdaq 100 and Russell 2000. The latter markets are well off support, but not close enough to resistance to suggest supply will become a significant issue. Nasdaq Market Breadth is weakening, but weakness is not enough to crack a rally. However, it's a warning the Nasdaq may not make it as far as resistance before correcting. As for a bullish signals, watch how the bull flag in the Russell 2000 plays out; a measured move to 1,020 is the ultimate (if somewhat ambitious) goal.
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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