It was a rough day with a big gap up, followed by a rapid sell off, then a nearly as quick recovery, before markets drifted lower. But by the end, bulls had done enough to suggest higher prices are in the works. Large Caps remain the indices best positioned to benefit over the long term, with the Nasdaq and Russell 2000 offering day traders the best opportunity to benefit based on intraday volatility.
The S&P is nicely positioned to challenge the April peak. Â It’s also regaining some of the ground it had lost against the Russell 2000 during the April bounce.
The Dow is the index most likely to break higher first.
The Nasdaq remains wedged between 20-day and 50-day MAs, but stochastics are struggling to make it above its 50-day MA.
The Russell 2000 failed to finish with a gain, but it too is caught between moving averages. However, it’s losing ground against the Nasdaq.
Longs hold the edge heading into tomorrow.
