Russell 2000 and S&P successfully test breakout support

A good end-of-week finish for markets offered positive tests of support to head into next week with. The Russell 2000 tagged breakout support defined by November's swing high and 20-day MA. Volume steadily declined off the reversal from the $199 high - another positive - although the MCD trigger 'sell' was a little disappointing.

The S&P had a smaller distance to travel to test support but managed to repeat the action which also included a positive test of its 20-day MA. Also like the Russell 2000, it finished the week with a MACD trigger 'sell'. 

The Nasdaq hasn't retreated as far as the Russell 2000 or S&P and has yet to engage in a test of support. Because of this, it hasn't yet turned in a 'sell' trigger for its MACD, but has for On-Balance-Volume.  Friday's finish for the index was a neutral doji, a potential turning point to end the 6-day decline; if not the doji, then moving averages are there to lend support.


All indices are working towards right-hand-bases, with current action early steps in the bullish reversal. December rallies haven't consolidated as they continue to push higher, so until this happens we won't know for sure we have a true bottom in place. However, I am the opinion that the June low was the low of the decline, with a successful retest in October, leading into current rally. 

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

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