NASDAQ Breaks Out As Life Returns To Markets; S&P 500 Edges To New High
Declan Fallon | Apr 27, 2021 01:07AM ET
After days when things were very quiet for the market it looks like on Monday the NASDAQ finally came to life. Though the NASDAQ didn't quite close at a new all-time high, it has managed to clear the small handle it was shaping just below resistance. Technicals are positive, even as relative performance drifts lower. This might be the cue to kick the next major rally and end the 4-moth consolidation.
The S&P did edge to a new all-time high yesterday, but it did it on one of the smallest of gains. This index has been doing the running since the middle of March, but it may find itself in a shift back towards Small Caps (Russell 2000).
The Russell 2000 (via IWM) is interesting as we had a 'bull trap' in March, but now we have a 'bear trap'; technicals are improving and if the 'bear trap' is to become dominant we should see relative performance switch to a new 'buy' signal ad a continuation of the rally.
We will see if markets deliver on their promise, but the nascent breakouts are a positive start and will help end consolidations which have featured for most of 2021 in lead indices.
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