Nasdaq Breakout As Life Returns To Markets

After days when things were very quiet for the market, it looks like the Nasdaq has finally come to life. The Nasdaq hasn't quite closed at a new all-time high but it has managed to clear the small handle it was shaping just below resistance. Technicals are positive, even as relative performance drifts lower. This might be the cue to kick the next major rally and end the 4-moth consolidation. 

The S&P did edge a new all-time high, but it did it on one of the smallest of gains. This index has been doing the running since the middle of March, but it may find itself in a shift back towards Small Caps (Russell 2000).

The Russell 2000 ($IWM) is interesting as we had a 'bull trap' in March, but now we have a 'bear trap'; technicals are improving and if the 'bear trap' is to become dominant we should see relative performance switch to a new 'buy' signal ad a continuation of the rally. 

We will see if markets deliver on their promise, but the nascent breakouts are a positive start and will help end consolidations that have featured for most of 2021 in lead indices.

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.