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Russell 2000 Primed for More Gains; S&P 500, Nasdaq Confirm Breakouts

Published 12/11/2023, 02:17 AM
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The last couple of weeks have seen the Nasdaq and S&P 500 move to-and-fro in a consolidation trading range, digesting the gains from the October rally, but Friday's finish pushed markets out of this trading range.

SPX-Daily Chart

Friday's finish also improved the weekly timeframe charts, confirming breakouts on these timeframes.

SPX-Weekly Chart

The Nasdaq is outperforming the S&P 500, but is underperforming against the Russell 2000 (IWM).

There is still plenty of room to build the right-hand side of its base, so even if the index has already banked good gains, there is still plenty of more in the tank.

COMPQ-Daily Chart

Technicals for the weekly timeframe Nasdaq are net positive.

COMPQ-Weekly Chart

Not to be excluded, the Dow Industrial Index has shaped a bullish consolidation and looks ready to break higher in line with peer indexes.

INDU-Daily Chart

The Russell 2000 ($IWM) broke from its small 'bull flag', but didn't quite break the high established earlier in the week. However, I would be looking for such a move over this week.

IWM-Daily Chart

Going forward, I would be looking for all indexes to continue where they left off on Friday.

Where we need to be careful is if indexes reverse back into the consolidation, then I would be looking at 'bull traps'. However, for now, action across the board is bullish.

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