S&P 500 Above Key Support, Nasdaq Builds Breakout Base; Russell 2000 Eyes Bounce
The good work of bulls was done early last week but rallies had run out of steam by Friday's close, although the weekly charts still look good.
On weekly timeframes, there was registered accumulation for the S&P 500 and Nasdaq but not for the Russell 2000 (IWM).
The Russell 2000 ($IWM) did close with a doji on the weekly timeframe and in a position to suggest a bullish (reversal) harami cross while also resting near support of $195.
The daily chart for the Russell 2000 ($IWM) shows a nasty bearish cloud cover that may carry over into the start of next week, but if the weekly bullish picture holds, early weakness will offer a buying opportunity.
The Nasdaq finished Friday with a second doji in a row. Volume was down on Thursday and technicals were unchanged with the MACD still trending bearish off the 'sell' trigger.
The index is outperforming relative to the S&P 500 but it does look a little pegged in by December highs.
However, if the pressure can be released it could be a big white candlestick that drives the breakout and this will continue the base development on the weekly time frame.
The S&P 500 is running along 20-day MA support, managing to edge a new all-time high in the process.
The weekly chart has the potential to evolve into a measured move target of 5,400, but if this is to prove true, then in the coming week we would need to see a white candlestick that clears the December swing high
We don't know what the coming week will do, but the S&P 500 is at highs and the Nasdaq isn't far away from one.
Clearing these highs will end the bear market of 2021-2024 and open up new opportunities for the rest of the year.
Given that, buying weakness would be the preferred strategy, although we could make returns back to
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