The S&P 500 is clearer in its outlook. September offered a clean breakout, and the index has held it with relative ease so far. The index is underperforming the Nasdaq, but price action trumps all. There is a MACD trigger ‘sell,’ but given Friday’s action, I would look for this signal to reverse.
The Nasdaq appears to be the relative index outperformer. Its chart is a hybrid of the S&P 500 and Russell 2000; it’s not at highs, but it has cleared the downward channel on net bullish technicals (there is no MACD trigger ‘sell’). But as with the Russell 2000, the indecisive ‘doji’ finish for the candlestick is not ideal.
Had Friday’s price action finished with a more bullish set of candlesticks, then Monday would offer a clearer opportunity for bulls. As it stands, it will likely take an open near Friday’s close to get things going. Otherwise, Friday’s gains could slip away.More By This Author:S&P In Breakout Support Test As Russell 2000 Drifts LowerS&P Holds Breakout To Help Russell 2000Russell 2000 Morphs Into Double Top
