After the rejection at resistance it would have been easy for the equal-weighted S&P to come back to its moving averages. However, today's close delivered a bullish dragonfly doji, although momentum is overbought which means it's not a reversal candlestick. Given the proximity to resistance it's well placed to deliver a breakout following the lead of weighted the S&P. Technicals are net bullish, but there is still significant underperformance against the weighted average.
Action over the last week in the weighted S&P has been shaping a solid handle. It now offers a good risk:reward opportunity and the chance for a measured move target to 7,900.
The equal-weighted Nasdaq 100 edged itself above its 200-day MA yesterday, but dropped back below it today. Volume rose in confirmed distribution, although technicals are net bullish. This action may be a 'mini-bull trap'.
The Nasdaq is holding its breakout and is showing decent demand at 24,200, and is a good place to place stops if looking to go long.
Semiconductors have yet to register a down day in nearly 3 weeks. It's got to a point where you can't be a buyer, but there isn't a reason to sell either. Psychological resistance of 10K has been breached and this is perhaps the new stop zone if long.
Equal weighted indices are catching up with their weighted peers. Latter indices are offering good longside opportunities. Even if sellers strike, there is plenty of support to work with.
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