Image Source: A bit of a non-event for the S&P and Nasdaq as both indices closed with tight doji near their highs. There isn’t a whole lot more to add for these indices. The Russell 2000 () managed to deliver a little more upside with a successful test of its 50-day MA. However, the volume was well down on what I would like to see for a successful support test.I follow J.C. Parets and he has noted the breadth weakness in this rally. This is apparent in the Percentage of (Nasdaq) Stocks above the 50-day MA, 200-day MA, Bullish Percents Index and Summation Index, all of which are showing a bearish divergence.Given the breadth picture (in the Nasdaq), the expectation is that tight trading will eventually give way to selling, or catch bulls off guard with a ‘bull trap’. I would expect this selling to spill across indices, but let’s see what the market brings.More By This Author:The Week Closed With Strong Gains On Higher Volume Accumulation Bullish Hammer For Russell 2000 At 50-Day MADay Trade In Nasdaq 100 Delivered; What Next?
