Buyers cancel the last 2 days of sale
There wasn’t much volume yesterday, but buyers were able to recoup the last two days of losses as the rally from the May lows continues. I like the action in the indices even if the tone in the world of social media remains negative.
Breakout support rallied with an acceleration in the MACD trigger and a new “buy” trigger in relative performance against the .
COMPQ Daily Chart
The S&P is about to make a secondary break of the downside resistance connecting the March-April highs. Technicals aren’t as strong on NASDAQ, but On-Balance-Volume is close to a new buy trigger, as is stochastic momentum.
SPX Daily Chart
The also worked on breakout support, aided by a new “buy” trigger in On-Balance-Volume to go along with the long-standing MACD “buy” trigger. Despite this, the index is relatively losing ground compared to the comparable index, but is not yet an underperformer.
IWM daily chart
Investors should be happy with the current action, especially if they bought during the May decline. The Russell 2000 managed to return to the previous February-April trading range, with the S&P next in line to do the same. At the very least, the current rally will be tight and things should pick up speed if they can get past the small consolidation that happened in late April for a few weeks.