Nasdaq Rebuffed By Resistance

Yesterday's gains in the Nasdaq pushed above resistance to challenge the April 'bull trap', but there wasn't the follow through needed to maintain the breakout. Technicals are net positive including relative performance versue the Russell 2000.

The S&P maintained its edge breakout, with technicals net bullish, but the index relative performance to the Russell 2000 still below the average. Prior gains were enough to keep the breakout intact despite today's loss. 

The Russell 2000 stayed within its range, poised to breakout.

It was only the Nasdaq which got knocked back today.  Long term health of the rally will be determined by the Russell 2000, and presumably a breakout in the latter index in the days to follow.

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

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