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NASDAQ Primed To Breakout

Published 06/18/2021, 01:48 AM
Updated 07/09/2023, 06:31 AM

Some decent stuff from indices without rocking the boat.

The NASDAQ is back pressuring the 'bull trap' as it looks to break to new all-time highs above 14,211. Technicals are net positive including a relative performance advantage over the Russell 2000. Trading volume is a little light for a resistance challenge, but I would look for this to change on the break.

COMPQ Daily Chart

The Russell 2000 fell outside of its handle, but today's close - while lower - marked a successful test of the 50-day MA on bullish hammer on higher volume. Technicals may have shifted negative with On-Balance-Volume and ADX both on 'sell' triggers, but I would lean on price action more here. This still looks good for a break of March swing highs.

IWM Daily Chart

The S&P fell out of its rising trend, but like the NASDAQ is poised to breakout. The 200-day MA and 50-day MA have converged through most of 2021, but the index is currently defending its 20-day MA (successfully). Aside from momentum, technicals are bearish, but price action is dominant. Should be enough to drive a breakout given the surge in trading volume.

SPX Daily Chart

Indices are pressuring resistance in a manner favoring a follow through move higher. Sneaky traders could buy in anticipation, but don't hold if prices drift strongly away from resistance. 

Latest comments

breakout or break down ?
MACD on IWM has made it's cross (negative) and sellers are becoming exhausted (positive).
So when technicals show positive you rely on them but if they show negative they can be forgotten and use something else instead so only way is always up. Right.
how are you are you okay
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