Daily Market Commentary: Shorts Crushed
A tough day for any shorts in the market. The Nasdaq blew away the right shoulder of the bearish head-and-shoulder pattern. It hasn't completely negated the pattern - a break of the head high is required for this - but it's a big step in the right direction. Volume climbed to register accumulation as the index continued to gain in relative performance against the S&P.
The S&P maintained its advance, but lost relative ground against the Russell 2000, a good sign of rotation into more speculative issues.
The Russell 2000 popped a big move higher, clearing two resistance levels and is on course to test a resistance level defined by February and March swing highs. It's even making relative gains against the rapidly recovering Nasdaq.
While not mentioned much in recent weeks, the Dow managed to muster a breakout, but is underperforming against the Nasdaq 100.
But not to be undone, the Nasdaq 100 posted a breakout of its own.
And just for good measure, the Semiconductor index made it 11 straight gains in a row...
All in all, it wasn't a day to be a short... Best hope for bears is a 'bull trap' from the many breakouts which emerged today. Although the Russell 2000 is likely to continue in its role as the 'value' index.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The S&P maintained its advance, but lost relative ground against the Russell 2000, a good sign of rotation into more speculative issues.
The Russell 2000 popped a big move higher, clearing two resistance levels and is on course to test a resistance level defined by February and March swing highs. It's even making relative gains against the rapidly recovering Nasdaq.
While not mentioned much in recent weeks, the Dow managed to muster a breakout, but is underperforming against the Nasdaq 100.
But not to be undone, the Nasdaq 100 posted a breakout of its own.
And just for good measure, the Semiconductor index made it 11 straight gains in a row...
All in all, it wasn't a day to be a short... Best hope for bears is a 'bull trap' from the many breakouts which emerged today. Although the Russell 2000 is likely to continue in its role as the 'value' index.
---
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!