Another good day sent indices back to highs, but it was the Russell 2000 that probably came out best. Yesterday’s losses in Small Caps were consumed by a bullish engulfing pattern. The index defended its 20-day MA, although stochastics weren’t oversold,which would have strengthened the engulfing pattern.
The Nasdaq finished at handle resistance. Volume climbed to register an accumulation day, with support at a lows of 4,653.
The S&P is primed for some follow through tomorrow. Stops on a loss of 2,040.
The semiconductor index launched a second challenge of the ‘bull trap’; this should help both Nasdaq and Nasdaq 100.
For tomorrow, look for upside in lead indices. Shorts have little to work with. unless today’s gains are retraced. .
