Bitcoin Nicely Setup For Further Advances

Shorts finally blinked after the narrow trading action of previous weeks when a small hint of buying led to a larger period of short covering for Bitcoin. Technicals are net bullish as Bitcoin vastly outperformed the tech favored Nasdaq, leaving it nicely setup to kick on.

While Bitcoin is outperforming the Nasdaq, the Nasdaq began to edge above the March swing low and is on course to test the 50-day MA. It's likely to be the first index to attempt a V-bottom and is best placed to lead the other indices higher.

The Russell 2000 ($IWM) has a little more room to make it to the March swing low but looks favored to do so.

As for the S&P, it's decision time. If bears are going to win out, then the S&P is likely to be the first index to show it as it sits just below resistance.

It's up for grabs tomorrow; bulls have the Nasdaq and Bitcoin and probably the Russell 2000. Bears have the S&P. Even a bullish assessment still requires a retest of the lows, but just because I think that, doesn't mean it will happen.

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

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