Today’s finish was a continuation of Friday’s action. Market were able to push it a little further by ending the day at the highs. The only disappointment was the lighter volume (very light volume).
The Nasdaq was to able to finish the day above its 200-day MA. Technicals are wavering with the MACD on a ‘sell’ trigger as the Directional Index continues to fall (i.e. trendless environment).
The S&P popped over 1,260 resistance (now support). The 200-day MA remains resistance as the 20-day MA offers support at the lows.
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The Russell 2000 defended 731 support at the low for a third day in a row with additional support at the fast rising 20-day MA. The index is nicely positioned for a push to 773 resistance.
For tomorrow, look for a solid push higher to finally negate the various ‘bear traps’. While overnight news may change things, I would be surprised if markets broke below 3-day lows given past trading action and the presence of 20-day MAs as additional support.
