The S&P is up against channel resistance as Friday's action held to the upper range of Thursday's intraday spread. The index will have an opportunity to confirm the 'bear trap' on Monday as any gain will push it above channel resistance. Technicals are mixed with the MACD trigger 'sell' competing with a strong - if fading - On-Balance-Volume accumulation trend. There is also a significant relative performance loss against Small Caps.
The Nasdaq is caught in the middle. Good relative performance, decent technicals but trading neither at support nor resistance. The prior trend suggests this will make it to channel resistance so longs have little reason to sell.
Tech breadth is attempting a swing low but not from an oversold position. However a rally from here has plenty of room for upside before it becomes overbought.
For Monday, look to the Russell 2000 to break resistance and perhaps for the S&P too.
You've now read my opinion, next read Douglas' blog.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.