Yesterday, the Dow was the first of the lead indices to confirm a 'Double Bottom' with a neckline break of 16,500. The index tagged the 20-day MA in the process. Bears will need a 'bull trap' to regain control, but they will find it much harder to sustain a move below 16,500, which will now be viewed as an accumulation zone. The 50-day MA will be today's challenge, but momentum is on its side. The question is whether other indices can follow suit?
The S&P finished on its neckline. Any further gain will register as a breakout. As with the Dow, the 50-day MA is just above at 1,951 to offer supply.
The NASDAQ returned a respectable gain without changing the overall picture a great deal. On-Balance-Volume returned a 'buy' trigger, and the index is on the verge of a relative 'buy' trigger against the S&P. Volume was a little disappointing, but additional gains will get the FOMO crowd involved. Real supply doesn't kick in until 4,900.
The NASDAQ 100 actually registered a breakout of its own, although it hasn't made the same strength of move as the Dow did. Yesterday's move was accompanied by a 'buy' trigger in On-Balance-Volume.
The Russell 2000 is still playing to a 'bear trap'. It has room to run before it reaches supply which gives bulls room to play with. For this week, look for a challenge of the January swing high around 1,035.
For today, it will be about indices consolidating their breakouts and challenging 50-day MAs. Modest losses acceptable, but important they stay around the upper regions of last week's gains.