Nasdaq, S&P 500 Bulls Eye Key Resistance; Russell 2000 Remains Net Bearish

[Pelican Press 0]

Nasdaq, S&P 500 Bulls Eye Key Resistance; Russell 2000 ******** Net Bearish

The () has been guiding towards this, but the positive reaction in the and following Friday’s gains in the Small Caps index is not enough to suggest a swing low is in place for these indexes. For starters, buying volume was light and momentum remained firmly oversold.

The S&P 500 did offer an opportunity at the 50% Fib retracement, and Fib zones give the best indication the decline has found a sustainable low, or at the very least, not one prone to further panic selling.

The Nasdaq has taken a ******* hit over the last few weeks than the S&P 500. Relative performance has moved sharply away from the index and only the potential bullish harami offers a scenario more bullish than the S&P 500.

The index is sitting on the 38.2% retracement line in what amounts to a perfect test. If there is a bounce here, look for it to stall at the 20-day MA.

The Russell 2000 ($IWM) posted a second day of gains but buying volume was well down on Friday’s accumulation. The buying was insufficient to improve the technical picture, which ******** net bearish.

Buyers have started to defend markets at current levels, offering the chance for markets to shape a bounce back to resistance, and then, either extend in a sideways market or launch a fresh rally to new highs for all indexes.

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#Nasdaq #Bulls #Eye #Key #Resistance #Russell #******** #Net #Bearish

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