Markets poised for new round of breakouts
It was day which left lead markets poised for fresh breakouts as they finished on resistance or just above resistance (now support).
The S&P ended the day just below the February swing high (around 3,130) as volume climbed in resistance driven profit taking (and also ranked as distribution). Technicals, aside from relative performance, are all bullish and show no signs of divergence; so the expectation would be for resistance to breach.
The Nasdaq had managed to close the February breakdown gap late last week and broke this resistance this week. Today's selling, while falling under the umbrella of distribution, didn't violate support. The MACD has effectively flat-lined, so signals from it are of less value. The index has started to underperform relative to the S&P, but other technicals are good - particularly the trend in On-Balance-Volume, which marks strong accumulation, despite today's heavier selling.
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