On Tuesday it was the S&P 500 and Semiconductor Index which broke higher. Yesterday that honor almost went to the NASDAQ, but it couldn't quite do it.
However, the NASDAQ is well placed to do so today. The NASDAQ finished with an accumulation day, and the consolidating breakout in the Semiconductor Index should help deliver the break. Technicals are nicely positioned as net positive too.
The S&P 500 yesterday had a low key day. It finished with a doji that held above Tuesday's breakout level. Selling volume also dropped. Bulls may even have some follow through here: either the NASDAQ helping the S&P 500, or vice versa.
The Russell 2000 did little, its doji was a point above key 1,200 support, but yesterday's action was relatively tight. Its day may come by the end of the week.
The NASDAQ isn't as well placed. For the NASDAQ there is still room for resistance before a breakout can be declared. The good news is that yesterday's action reversed the last bearish technical signal - returning the technical picture net bullish.
For today, the trade is to look for a breakout in the NASDAQ. Pre-market strength in the S&P 500 and/or Russell 2000 would provide the basis for this move. Although the NASDAQ is likely to work a breakout on its own merit, and this will provide the catalyst for the S&P 500 and Russell 2000 to bank gains.
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