Friday’s breakouts were small, and vulnerable to selling and ‘bull traps’, but today’s action stayed close to Friday’s highs, keeping bulls happy. The S&P has breakout support at 2,009 to work with, but it’s hard to see this holding when sellers do return. The S&P has Fib levels, of which the 61.8% level close to the 200-day MA would offer an ideal opportunity – but there are plenty of support levels to work with on its way there.
Likewise for the Nasdaq. Â In this case there is a convergence at 4,323/5 which is the August swing low, 61.8% Fib retracement, and the 200-day MA.
The Russell 2000 is the one index which remains below highs, and so is vulnerable to sellers looking to take profits in the rally from the deep discount October swing low. The index is in positive territory relative to the Nasdaq, although this is drifting into whipsaw territory.
For tomorrow, the narrow intraday action for today sets up a swing trade opportunity: trade break of high/lows with a stop on flip-side.
