Friday's action sees defense of S&P and Nasdaq breakouts
There wasn't a whole lot of drama to Friday's action but it was telling that there was no undercut or 'bull trap' left to linger into the weekend for either breakout in the S&P or Nasdaq. On Thursday, we did see potential reveral candlesticks in these indices, but there was no return on them by Friday's close. However, I was disappointed with the number of penny stocks that were picked up by my breakout scan on Friday, suggesting there may yet be trouble ahead for the indices. However, there is a tonne of support for traders to lean on, even if it takes a 10% loss to get there. The S&P may be underperforming relative to the Nasdaq, and the last couple of days have seen buying volume fall, but the breakout is very much intact and technicals are solidly bullish.