Today's buying offset the prior two days of indecision in the markets. The Nasdaq had perhaps the best of the action, rallying past the 20-day MA in a move towards 4,485. Technicals are on the verge of a net bullish switch with an upcoming MACD trigger and On-Balance-Volume 'buy'.
The S&P will soon be up against its 20-day MA, which 'Death Crossed' with its 50-day MA. If there is going to be a retest of the developing swing low then this is the index likely to do so first.
The Russell 2000 won't be too far behind. Unlike the S&P it already has a MACD trigger 'buy', but it hasn't yet closed above its 200-day MA.
Markets are well positioned for further gains. A push lower will look more like a bullish retest than a resumption of the July down trend. It would take a significant news event to undo this, and even a break of the swing low would push market breadth into buy territory.
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