The Nasdaq doesn't have a 'Bull Trap' to deal with, but it too has struggled to make it past the swing high of 3,532. The MACD 'sell' trigger lends weight for a top.
Nasdaq Breadth continued to roll in favour of bears; for example, the Percentage of Nasdaq Stocks above 50-day MA is on two bearish technical signals, and is some distance shy of the 2013 high posted in January - a very significant negative divergence to the parent Nasdaq.
There are growing bearish signs, but prior momentum keeps bulls in control. The potential 'short' plays defined by the swing highs remain intact, although the S&P is looking to be the better short play than the Russell 2000.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.
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