The Nasdaq hasn't yet mounted a challenge of' 5,120. Bears looking for a reversal head-and-shoulder pattern would not want to see a push above 5,063 as this would negate the pattern. Bulls will have the MACD trigger 'buy' to work off.
The Russell 2000 had already delivered a clear channel breakout, but Friday's trading marked a rejection of the 50-day MA. However, bulls also got a MACD trigger 'buy', which gives a fresh opportunity for a new moving average challenge.
The Semiconductor Index is working off converged support of 704, 50-day MA and declining resistance. It's nicely set for Monday.
Next week could be the time bulls finally take indices out of their 4-month trading ranges and keep this six year rally ticking.
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. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.
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