No great surprises or shocks from Friday, a late surge in the S&P gave the end result to bulls, but losses elsewhere were very minor. Another day which keeps the bullish picture intact: very little on offer for bears.
In the case of the S&P the strong finish on the day came with higher volume accumulation. There was a brief recovery in relative strength (vs Russell 2000), although it looks like a temporary reprieve.
The Russell 2000 experienced a bearish engulfing pattern at the 50-day MA, although the index looks to be shaping a bullish handle following the reaction bounce off the May low. Prepare for an upside breakout, but intraday penetrations of 1,130 still possible (buying opportunity?).
The Nasdaq is nicely positioned at a resistance level. Friday's loss was on higher volume distribution, although the day looked more bullish than bearish. There may be some come back, perhaps as far as the 20-day MA which is about to 'Golden Cross' with the 50-day MA, but this should be viewed as healthy and a good buying opportunity.
Nasdaq breadth isn't suggesting a major swing low, but a low of substance to last the summer is looking likely.
Tomorrow is a bank holiday in Ireland so there won't be an update, but I don't expect things to change anytime soon.
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