After Neutral Finish Last Week, Indexes Look Ready to Rally
Declan Fallon | Apr 24, 2023 13:05
There was the risk Friday was going to see markets drift away from their generally bullish setups. Instead, indexes closed the day with small bullish 'hammers' or neutral doji that gives bulls an opportunity to mount a period of buying.
The Russell 2000 successfully defended its 20-day MA despite remaining pegged by 200-day MA resistance. Technicals are a mix of bullish MACD, On-Balance-Volume, and ADX, with bearish intermediate stochastics and underperformance against the Nasdaq.
The Nasdaq retains 20-day MA support on higher volume accumulation. Technicals are mixed, with a 'sell' trigger in the MACD and On-Balance-Volume, but firmly bullish stochastics and ADX. The Nasdaq has drifted into a period of underperformance against the S&P 500, but it's a relatively minor loss.
The S&P 500 has the most bullish technical picture and closed Friday with a doji. A break of February's highs is necessary to kick start the formation of a right-hand-base and deliver on the bigger challenge of reversing losses from 2021.
For the coming week, we want to see the subtle defense of moving averages on Friday develop into something more. It would probably take only one down day to kill the bullish potential of last week's finish. A move above Friday's highs might be enough for an aggressive long.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.