Bitcoin ($BTCUSD) Bull Traps On Higher Volume Distribution

There wasn't a whole lot going on with indices. There was a solid follow through in the Russell 2000 ($IWM) yesterday that gives the index wiggle room to support. The Nasdaq and S&P maintained their breakouts. The one fly in the ointment was Bitcoin ($BTCUSD). There was a confirmed 'bull trap' with an undercut of breakout support on higher volume selling distribution.

The Russell 2000 ($IWM) is only starting to kick on in relative terms after a summer of underperformance. It remains the index most likely to kick on and is perhaps the best trade opportunity.

If you are a breakout trader, then the Dow Industrial Average ($INDU) is your best bet. It's sitting on the verge of a resistance break with new 'buy' signals in the MACD and ADX.

While we are seeing a bit of a divergence between the Nasdaq and Bitcoin, we are seeing a potential, upcoming 'buy' signal in the Nasdaq Summation Index ($NASI) - although technicals are net bearish (but oversold).

If you are short trader, then look to attack any rally in Bitcoin. If you are bull, prepare for a breakout in the Dow Industrials or a (long) trend play in the Russell 2000 ($IWM).

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

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