Russell 2000 ($IWM) and S&P Mount Successful Support Test

The Russell 2000 ($IWM) may be playing towards a double top, but until there is a confirmation break of $206.50, the index remains range bound. Friday saw a successful rally off nearby 20-day and 50-day MAs on higher volume accumulation. There is still a MACD trigger 'sell' to work off, but other technicals are bullish. If there is a disappointment, Friday's 1%+ gain came with an indecisive doji, so no confirmed break from the 'bull flag'.

The S&P is clearer in its outlook. September offered a clean breakout and so far has held it with relative ease. The index is underperforming the Nasdaq, but price action trumps all. There is a MACD trigger 'sell', but given Friday's action, I would look for this signal to reverse.

The Nasdaq is the relative index outperformer. Its chart is a hybrid of the S&P and Russell 2000; it's not at highs, but it has cleared the downward channel on net bullish technicals (there is no MACD trigger 'sell'). But as with the Russell 2000, the indecisive 'doji' finish for the candlestick is not ideal.

Had Friday finished with a more bullish set of candlesticks then Monday would offer a clearer opportunity for bulls. As it stands, it will likely take an open near Friday's close to get things going, otherwise, Friday's gains could slip away.

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

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