Bears found no joy after the first real day of selling for February failed to lead to anything. The Nasdaq maintained its breakout, and even managed to register an accumulation day: bulls can probably play for further upside with a stop below 4,225.
The S&P is in the process of shaping a bull flag. A measured move will take it towards 1,950s. However, it didn’t register an accumulation day on Thursday.
While bulls will have stung any attempt by shorts to pressure further losses for the Russell 2000. Â Additional short covering could see the January ‘bull trap’ come under pressure. Bulls can use 1,150 as a stop level.
Friday looks like it will open modestly higher, so if it can defend yesterday’s closing price into the first hour of the morning, then the chances are bulls will push on in afternoon trading. Or at the least, stubborn shorts may be forced to cover their positions.
