Week Starts Brightly

With the weekend behind us traders had a chance to digest last week's gains, and the decision was to keep on going. The Russell 2000 had the best of the action with a 1% gain. The index cleared both 20- and 50-day MAs with resistance up around 1,268 and a chance to challenge the 'bull trap'.

The S&P confirmed 2,120 low as support and kicked on from last Thursday's breakout, although today's action came on lighter volume.

The Nasdaq cleared 5032 and negated the possibility for a bearish head-and-shoulder pattern. Today's close sets up for a challenge on 5119. The Nasdaq 100 is also on course to challenge highs and bearish wedge resistance.

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For Tuesday, look for more of the same, but if bears do make an appearance then it will be important for the breakout levels established last Thursday to hold. 

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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