S&P Maintains Breakout on Successful 20-day MA Test

Another day, another successful defense of breakout support. The S&P held on to its 20-day MA and is well placed to bounce of this moving average tomorrow. Volume was down, which for a higher close was maybe a little disappointing.

The Nasdaq closed with a small doji in a very nondescript day for the index. Volume was lighter too.

The Russell 2000 continued to hold its breakout. Like the S&P, the 20-day MA is available to lend support too.

Bears have, so far, struggled to push this market lower. With the presence of the 20-day MA (and breakout support) for both the S&P and Russell 2000, there is an opportunity for bulls to come back out of the closet and reassert their earlier control.

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. You can read what others are saying about Zignals on Investimonials.com.

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