S&P 500 Breakout Confirmed But Technicals Continue To Lag
Declan Fallon | Apr 10, 2020 12:11AM ET
Yesterday, the S&P did a good job reversing Wednesday's bearish cloud cover, clawing back all losses and remaining above breakout support. Technicals aren't all there yet; the ADX (+DI/-DI) joined the MACD on a 'buy' trigger, while Stochastics and OBV remained bearish.
The NASDAQ similarly defended the breakout but did so with a bullish trigger for +DI/-DI and the MACD. Even ROC returned to positive territory. Where things are looking a little sketchy is the relative loss against the S&P.
The Russell 2000 (via iShares Russell 2000 ETF (NYSE:IWM)) isn't there yet, but it did enjoy an On-Balance-Volume 'buy' trigger alongside that of the MACD.
The Semiconductor Index is in an interesting position as it becomes the first of the lead indices to test its 200-day MA. Yesterday's action was good, but there remains much work to do. It does enjoy good technical strength with stochastics on the verge of a bullish cross.
The question now for bulls is if they can hang on to this bounce. Certainly, the breakout stock monitor has been very disappointing in so far as it has delivered few—and often, if any—breakouts. We will see what the coming week brings.
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