It's probably down to the Dow to lead bulls out. Other indices are too far back to make a difference, and the S&P isn't close enough to suggest it will do the lead out. Volume climbed to register accumulation, a good sign for bulls looking for more.
The Dow managed a picture perfect 50-day MA, and now could be at an all-time high by the end of the week.
While the S&P hasn't yet negated the bearish head-and-shoulder reversal, it should have enough to follow the Dow higher.
The Nasdaq is about to break above the 20-day MA, although this will push the index into the 20-day and 50-day MA No-Mans land, where action can get scrappy.
The Russel 2000 made yet another pass on the 200-day MA, but each successive test weakens this support. While the Dow sits on the verge of a new high, the Russell 2000 is at risk of a significant breakdown. I think the Dow will win out and 'rescue' the Russell 2000, but if bears manage to break the Russell 2000 first, then a potential 'bull trap' could come into play for the Dow.
For today, bulls are ready to profit from a breakout in the Dow (and S&P), but bears may attempt a sneak attack on the Russell 2000. The easy focus is the Dow, but the Russell 2000 may be the one to deliver the bigger profit.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI