We had a successful test of support for the Russell 2000 which delivered a low volume bounce with minimal improvement in supporting technicals.
The Nasdaq rallied back above trendline support, but buying volume was a little disappointing. Despite this, there was a new 'buy' trigger in On-Balance-Volume. If things can stabilize here in an area where intermediate stochastics [39,1] are at mid-level support, it will mark a successful pullback in a bullish rally
The S&P also made it back above support, but also with light volume to the upside. There are still 'sell' triggers for both the MACD and On-Balance-Volume to contend with. Stochastics are the only bullish indicator at the moment, but relative performance is ticking higher and the index did manage to successfully defend its 50-day MA.
'Bull Traps' are typically power reversals, but the lack of buying volume is a bit of a disappointment. Let's see if this picks up as we approach the February swing high.
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