Edge gains help pull indices away from trading ranges.
It was a modest gain, but significant in that Tuesday's it helped push the rallies into spike highs from Monday - helping to weaken the bearish implications of yesterday's action. Volume was lighter, so there was no accumulation, but there was some technical improvement.
For the S&P, there was the MACD trigger 'buy', as relative performance against the Russell 2000 took a nose dive. The index is holding 50-day MA support and is well placed to challenge the 200-day MA.
The Nasdaq is shaping more of a rounding bottom, but remains challenged by 50-day MA resistance. Technicals are more bullish with 'buy' triggers in the MACD, On-Balance-Volume and ADX, although momentum underperformance continues - not helped by been no longer oversold.
The Russell 2000 ($IWM) enjoyed the best of the gains as it came to challenge its 200-day MA. It wasn't quite able to close above it, but it did build on 'buy' triggers in the MACD, On-Balance-Volume and ADX, along with strong outperformance against the Nasdaq.
The Dow Industrials is also building a solid 'handle' in a cup-and-handle pattern. Interestingly, it's not as technically bullish as the Russell 2000, but it is outperforming Tech averages and is the closest index to building new all-time highs.
For tomorrow, we want to see indices build on the challenge of yesterday's spike highs and negate the bearish implications of these candlesticks. As a starter, I would want to see closes above leading moving averages before knocking out November resistances. Early action for 2023 is positive, but there remains much work to do.
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