Nasdaq Still to Confirm Breakout, S&P 500 Fails to Test Resistance
2023.05.11 04:11
Hardly inspiring, but it was a price breakout. The edged itself above resistance, but it will need to do more to confirm. There was a MACD trigger ‘buy’ with generally improved technicals – although On-Balance-Volume remains bearish. Today’s candlestick was not exactly blowing it out of the water, but it did qualify as a breakout.
COMPQ Daily Chart
Things get a little sketchy when we dig into some other indexes. The didn’t get to challenge resistance but did finish with a dragonfly doji, typically, this is important during a swing low, but it has less relevance when it appears as part of a trading range.
SPX Daily Chart
The wasn’t so lucky, although it looked much worse off earlier in the day. The 50-day MA looks key for support.
INDU Daily Chart
The ($IWM) finished with a bearish ‘black’ candlestick just below 50-day MA resistance. However, because this index is stuck in a trading range, the significance of this potentially bearish candlestick is reduced. On the plus side, there was a MACD trigger ‘buy.’
IWM Daily Chart
We need to be careful here. There was a breakout, but it remains vulnerable to a ‘bull trap.’ It will only take a close below resistance to confirm (for the Nasdaq). But, a decent gain tomorrow (in the Nasdaq) would firm up the move and help drive demand for the S&P and Russell 2000.
