Image Source: PexelsThe Russell 2000 had created a resistance break in the move back to the July spike high, but today’s loss ended that, opening up the possibility for a double top. Confirmation won’t come until there is a loss of $205, and technicals are net bullish. There is also price support in the nearby 20-day and 50-day MAs.
Things are a little clearer for the S&P. Last week’s breakout is still in effect and technicals are net positive. Today’s action was narrow and effectively kept things under the radar while lurking at all-time highs. It needs follow-through, but no hurry.
Like the S&P, the Nasdaq had a quiet day. It’s still a few weeks from challenging the July high, but bulls can remain optimistic. Technicals are net positive and the index is outperforming both the Russell 2000 and S&P.
One thing to watch is the Nasdaq Summation Index ($NASI). It has come up against historic peak resistance that is slowly rolling over as a top. Historically, this indicator can get to 500, but at 100 – prior peaks – it’s decision time.
For tomorrow, watch what the Russell 2000 does. It’s the only index pointing to weakness and it looks like the S&P and Nasdaq are waiting to see what happens. Given the Russell 2000 has already had four consecutive down days it’s due at least one day of buying.More By This Author:Markets Stay In Limbo
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