The Nasdaq was able to defend its 20-day MA with a bullish piercing pattern. Technicals are mixed, but price action points to a bullish consolidation which is likely to lead to new highs. Strength in semiconductors will help the Nasdaq and Nasdaq 100.
Nasdaq Breadth has started to peak with 'sell' triggers in breadth metrics and supporting technicals, even the Summation Index has begun to turn.
The S&P also managed a positive test of its 20-day MA. Technicals remain bullish, although today did rank as distribution. Bulls can look to buy a break of Wednesday's highs.
The Russell 2000 managed a picture perfect defense of 1,180. It will be important the bounce makes it past 1,205 in quick order, otherwise, a gentle rollover could see this index looking again at 1,180 in a couple of weeks. The drop in relative strength highlights the shift in trend in favour of more defensive Large Cap issues.
Thursday offers an opportunity for some upside follow through. Supply may quickly emerge, but there is some wiggle room for additional gains before then.
---
All Contributions Welcome - Thank You!
Follow Me on Twitter
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.
JOIN ZIGNALS TODAY - IT'S FREE!