Bull Flags for Nasdaq and S&P
The last few days have seen the S&P and Nasdaq consolidate their bounce with 'bull flags'. Both markets are coiling in preperation for a follow through move - presumably higher.
In the case of the Nasdaq, we have 'buy' triggers in the MACD, On-Balance-Volume and +DI/-DI - although stochastics are struggling to cross the mid-line. The index is outperforing the S&P which should favor a move higher and a challenge of the 50-day MA.
The S&P is in a similar predictament as the Nasdaq. Its `bull flag`is getting ready to break declining resistance but is backed by 'buy' triggers in the MACD and On-Balance-Volume. Note, once it does break through it will run into resistance of its 50-day MA.
You've now read my opinion, next read Douglas' blog.
Get a 50% discount on my Stocktwits premium account with 14-day free trial. Use coupon code fallondpicks at Fallondpicks Premium to get the discount.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Investments are held in a pension fund on a buy-and-hold strategy.