S&P 500, Nasdaq Inch Higher as Russell 2000 Braces for Upside Follow-Through
2023.12.13 04:48
I’m doing a bit of intraday trading as part of TopStep’s Trading Combine just to see how feasible day trading is. One thing I have been waiting for is the upside follow-through in the ().
I have watched as sellers have attempted, and failed, to undercut the swing low of the ‘bull flag’.
I have so far managed to stay on the right side of the intraday trend, although it feels like a decent push higher is not far away. Technicals are all net positive and the index is outperforming peer indexes.
IWM-Daily Chart
Action for other indexes has been more clear-cut, the managed to close at a new high on the fourth day of gains. Buying volume has dropped a little on yesterday’s action and we still await a new ‘buy’ trigger in the MACD.
COMPQ-Daily Chart
The also closed at its highs, but did at least manage a new MACD trigger ‘buy’.
SPX-Daily Chart
If there is a warning for bulls it’s that breadth metrics like the Percentage of Nasdaq Stocks Above their 50-day MA have moved to a ‘sell’ trigger. Overbought-bready metrics like these are good warning signs for pending tops, so caution is advised if long.
NAA50R-Daily Chart
When we do get some selling it’s going to be hard, but until we do, markets will keep pushing higher.
