The Russel 2000 is also presenting a shorting opportunity. Again, the 'bull trap' high is the stop, and January lows are the target. The fly in the ointment is converged channel support, and 20-day and 50-day MAs which will offer bulls a chance to fight back. Taking partial profits on such a test would give the larger trade some wiggle room.
The Nasdaq is the only index not to lose breakout support. If buyers are looking for a bounce, this is the index to play.
The Ukraine situation will probably keep markets muted until there is a clearer resolution. But Russians cutting gas flow to European markets would be a different story.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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