There really wasn't much wiggle room for markets without delivering breakouts for the Nasdaq and S&P, but yet, markers managed to find them.
The Nasdaq delivered a narrow day at resistance, but still no breakout. There was no change in the technical picture, but the index is very close to a new 'buy' signal in the MACD.
The S&P experienced a similar narrow day to the Nasdaq and has a similar techical picture. Because the day finished with a small doji, which marks an indecisive day, the likelihood of a down day is increased.
The Russell 2000 (IWM) had a wider range day, but finished with an inverse 'hammer'. Technicals are not as bullish as for the S&P and Nasdaq, but there was no change in these despite the potential for a reversal. Because today's action remained within the bounds of support and resistance defined by March-April's trading it weakens the potential for today's candlestick to play as reversal, but don't get caught by hindsight.
Going forward, we still have the opportunity of a breakout and today's action has done everything *but* breakout. There is still plenty of time for this to happen, but the Russell 2000 will need to improve sharply should the S&P and Nasdaq breakout.
More By This Author:
Nasdaq And S&P Launch Another Attack At Resistance As Russell 2000 Struggles.
"Death Cross" In Russell 2000 As Sellers Strike Markets
For Today, Read Yesterday - No Change In State Of Play
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