Bear Traps For S&P And Nasdaq?

We had a successful test of support for the Russell 2000 which delivered a low volume bounce with minimal improvement in supporting technicals.

The Nasdaq rallied back above trendline support, but buying volume was a little disappointing. Despite this, there was a new 'buy' trigger in On-Balance-Volume. If things can stabilize here in an area where intermediate stochastics [39,1] are at mid-level support, it will mark a successful pullback in a bullish rally 

The S&P also made it back above support, but also with light volume to the upside. There are still 'sell' triggers for both the MACD and On-Balance-Volume to contend with. Stochastics are the only bullish indicator at the moment, but relative performance is ticking higher and the index did manage to successfully defend its 50-day MA.

'Bull Traps' are typically power reversals, but the lack of buying volume is a bit of a disappointment. Let's see if this picks up as we approach the February swing high. 

Disclaimer: Investors should not act on any information in this article without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis ...

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