There were small gains across markets, but it was the Russell 2000 which benefited the most. Thursday’s gain managed to push past the 20-day and 50-day MAs on a fresh MACD trigger ‘buy’. Next up is a ‘buy’ trigger in the relative relationship between Russell 2000 and NASDAQ.
The S&P was up against resistance, but it managed to post a small gain to edge just above its 20-day MA. This move is enough to open up for a challenge of 2,400. Volume was better than Wednesday, but there was no ‘buy’ trigger in bearish technicals.
The strongest index is the NASDAQ 100. It had the smallest gain on the day, but it did manage to post a new closing high. The only bearish technical is the MACD, and it’s ready to switch to a new ‘buy’ trigger.
The last few days have seen small gains with no down days, but some markets haven’t yet clawed back the big down day from last Tuesday. When selling emerges it will be interesting to see if these small gains can hold. For Friday, the NASDAQ 100 is the only index with no overhead resistance. Shorts will be looking for a ‘bull trap’ in the S&P to suggest bears have a chance, but any existing shorts will be feeling the squeeze.