S&P Breakout Wait Continues...

One step back - one step forward. The S&P made back most of yesterday's losses on slightly lighter volume than the previous day's distribution selling. The breakout has yet to occur but today's gain keeps that possibility intact. 

The Nasdaq found support at the 20-day MA as the rally was maintained. Tech indices already enjoy a strong accumulation trend and this index remains the momentum trader's best friend. 

The Russell 2000 maintains its sideways movement as it gets squeezed between 200-day MA and 50-day MA. Technicals are mixed but weakening, which gives bears a slight edge, but any gain would quickly see a new 'buy' trigger in the MACD and relative performance to the Nasdaq. 

For tomorrow, bulls will want to see some follow through to today's buying - particularly for the Russell 2000 which is critical for the broader health of the rally.

You've now read my opinion, next read Douglas' blog.

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