Rally returns losses, but resistance remains

Indices enjoyed a solid Friday as buyers undid Thursday's losses. 

The Nasdaq is still underneath trendline resistance, but above its 50-day MA. Technicals are mixed with the 'sell' triggers in On-Balance-Volume and ADX offset  by bullish technicals for the MACD and Stochastics.

The S&P was similarly displaced by the sell off but managed to find support at its 20-day MA. Friday's close was nearly enough to register it as a new high.

The Russell 2000 had the quietest Friday as it registered the smallest gain of the lead indices while remaining inside its trading range. Technicals are net positive. One to watch. 

Friday was a day for optimists as markets returned to bullish ways, but there needs to be some follow through if the status quo is to be broken.  The Russell 2000 should be the lead out index, but it hasn't done so yet. Trading volume was light, so there are some doubts to the buying. Let's see what Monday brings.

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

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Investments are held in a pension fund on a buy-and-hold strategy.


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