Both the Nasdaq and S&P posted small gains after yesterday's to keep the consolidation intact and return both indices above their respective 50-day MAs. Buying volume was down for both indices. Nasdaq technicals remain net bearish, although momentum for the S&P is bouncing off the midline - an area of support in a cyclical bull market.
The Russell 2000 (IWM) is holding breakout support as it trades near highs. Of the main indices, it's best positioned to kick on to new all-time highs. If it's able to do so, then look for the Nasdaq and S&P to challenge their June highs.
The equal weighted S&P has also squeezed itself at all-time highs. It's a good swing trade opportunity; trade the break of today's narrow range (high/low) and place your stop on the flip side - a high risk:reward trade when you can trail a stop, particularly when a breakeven trade can probably be established quite quickly.
Bitcoin (BTC.X) is drifting lower and I'll be looking for a big red candlestick (>5%) soon. Hard to see why buyers would be keen to step in for an asset that has no intrinsic value. It's a short trade, although not as attractive as it was when it traded at its 20-day MA (marked by blue arrows on the chart).
Semiconductors have made a solid recovery over the past couple of days and there is an increasing chance this will hold the gains from March (amazing really, given the index has doubled over this time).
We have a number of trade opportunities across markets; for bulls, there is the Russell 2000, for swing traders there is the equal-weighted S&P, and for bears there is Bitcoin. I will be offline until next Wednesday as I'm travelling, we will see how these predictions pan out.
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