Russell 2000 Primed for More Gains; S&P 500, Nasdaq Confirm Breakouts
2023.12.11 03:02
The last couple of weeks have seen the and move to-and-fro in a consolidation trading range, digesting the gains from the October rally, but Friday’s finish pushed markets out of this trading range.
SPX-Daily Chart
Friday’s finish also improved the weekly timeframe charts, confirming breakouts on these timeframes.
SPX-Weekly Chart
The Nasdaq is outperforming the S&P 500, but is underperforming against the ().
There is still plenty of room to build the right-hand side of its base, so even if the index has already banked good gains, there is still plenty of more in the tank.
COMPQ-Daily Chart
Technicals for the weekly timeframe Nasdaq are net positive.
COMPQ-Weekly Chart
Not to be excluded, the Dow Industrial Index has shaped a bullish consolidation and looks ready to break higher in line with peer indexes.
INDU-Daily Chart
The Russell 2000 ($IWM) broke from its small ‘bull flag’, but didn’t quite break the high established earlier in the week. However, I would be looking for such a move over this week.
IWM-Daily Chart
Going forward, I would be looking for all indexes to continue where they left off on Friday.
Where we need to be careful is if indexes reverse back into the consolidation, then I would be looking at ‘bull traps’. However, for now, action across the board is bullish.
