A recent breakout in and (via ) turns out to be on the other side of the support. A recovery is highly likely as there was no outright collapse and selling decreased relative to Friday’s buying. However, for this to happen, sellers are not allowed to gain momentum. As it stands, Nasdaq and Russell 2000 are back within their previous consolidation.
Russell 2000 is most vulnerable to further selling as it underperforms Nasdaq. Even if a “bull trap” is confirmed, he will look for a possible 20-day moving average as support.
IWM daily chart
The Nasdaq breakout loss didn’t do much damage to the supporting technical picture, but we don’t want it to stray too far from the 200-day moving average. The index does not have the “golden cross” advantage of the 50-day moving average and the 200-day moving move, so a second wave of declines and gains is possible before a breakout is confirmed.
COMPQ daily chart
There were no technical alerts for this index to reverse as there were no breakouts to lose. Same as you about the index, one of my favorite things is the pending “golden cross” between the 50 and 200 moving averages, which is what drives breakouts. may become. In such a scenario, we would expect the Russell 2000 to lead and the S&P to follow.
SPX daily chart
Finally, although below the breakout level, there is also a pending bullish crossing between the 50-day and 200-day moving averages.
SOX daily chart
If the ex-breakout index can hold moving average support for the rest of the week (which could be either a 20-, 50-, or 200-day moving average), don’t worry too much. is not. Breakout loss yesterday.