Markets build a consolidation double bottom? Large Caps lead
The Russell 2000 and Nasdaq are building sideways trading ranges with the potential for a double bottom using Thursday's low and the March swing low as the basis for the next phase of the rally. It's not a deep pattern, but given the rally which led into it, it's as much of a consolidation as once can expect to see.
In the case of the Nasdaq, Friday's gain wasn't enough to offset the MACD trigger 'sell' or the loss in relative performance to the Russell 2000 (although no 'sell' trigger).
The Russell 2000 is showing a potential Adam-and-Eve bottom, although there is still much work to do - first of which is to get past the 50-day MA. Technicals are mostly bearish, but On-Balance-Volume has managed a new 'buy' signal.You've now read my opinion, next read Douglas' blog.
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