The chart of the Nasdaq Composite is similar to what we are seeing in the SPX, MDY, NDX, except for the Russell 2000, which is in a weaker position.
The pictures we present in the following pages will speak more than words. Even a one-eyed technician with a crooked ruler can determine that trend structure remains very weak across the major U.S. indices we review here.
The S&P 500, NDX, and Russell 2000 have rallied sharply in the last few days and have all have come into an area of resistance and have ellipse sell signals
The major U.S. indices remain in a very weak technical structure, and we would use any near-term strength to sell into.
We are highlighting WTI Crude Oil and the XOP to start. The one-day pullback in WTI held the uptrend off the December low and a place to add to a long position.
We recently wrote up notes on the buy zones for the S&P 500 and QQQ. These indices have reversed nicely from the target zones identified in our work, and now it’s a matter of managing the trade.
The NDX, S&P 500 Emini, and Russell 2000 are into trading buy zones. With a tight stop, we are putting on a long trade right here.
The oversold condition of the S&P 500 and the Nasdaq Composite has these indices into support zones where we would be long for a tradable rally.
The S&P is up a little over +200 points from our buy signal last week and now getting close to our MFU-4 target area. Momentum is strong, and we have improving internals, which means the index may exceed this target that was generated off the March low.
The recent pullback in both the S&P 500 and Nasdaq 100 looks like a buyable pullback into support. Both indices have held and turned up from their respective 50-day averages and the lower end of their intermediate-term regression trend channels. Both indices have also turned up from an ellipse buy signal. For the S&P, we get upside in the 4815—4835 area.
The recent pullback in the equity market has the S&P 500 down to an ellipse buy area and at the lower end of its long-term channel support. This looks like a spot to be a buyer.
We got the pullback we were looking for in the major averages reviewed last week.
After a 5-day pause at the MOB target band, the S&P was able to get above it and extending the advance off the October low. On page 3, we review the weekly chart with the next major hurdle for the index.
The S&P achieved our MOB target zone, so this is a place to look for a pause or pullback to occur.
A strong turn higher in momentum has the S&P 500, NDX, and the Russell 2000 breaking their short-term downtrends.