The Russell 2000 ($IWM) could be driving the lead out with a gap breakout of the declining channel alongside a close above the 20-day MA.
The bounce off the bottom comes with a ’buy’ in the MACD after successfully reaching the measured move target. The next target is redrawn resistance at the red hashed line and/or the 200-day MA.
The S&P 500 has managed to make it back to its 200-day MA and the January swing low. There were new ’buy’ signals in the MACD and On-Balance-Volume with volume spiking on Friday’s option expiration. The expectation here is for the rally to stall and perhaps consolidate around 5,775 for a few days. Friday’s gap will be a bearish draw in the near term.
The Nasdaq gap managed to close above the 20-day MA but still has the 200-day MA overhead playing as resistance. As with the S&P there are ’buy’ triggers in the MACD and On-Balance-Volume, but unlike the S&P, it has a long way to go before it gets to the January swing low.
Bitcoin rebounded off its measured move target and pushed above its 200-day MA. Next (LON:NXT) is the 50-day MA, then former support at 93,500. Action (WA:ACT) is positive, only there is a lack of buying volume to suggest there is real demand to keep the rally going. But what’s in motion stays in motion. I have drawn in a new downward channel that if breached will set up for a larger move back to 110K.
The Dow Jones Industrial Average returned inside its trading range along with a close above its 200-day and 20-day MA. There are also working ’buy’ triggers in the MACD and On-Balance-Voume to ride off. It may be the first index to challenge all-time highs.
For today, indices are a different stages of recovery. As the weakest, the Russell 2000 ($IWM) has finally managed to step out of its four-month slump. The Dow Industrial Average is the strongest index and may have created its own ’bear trap’ with the recovery above 42K. The bulls retain control for now.