Nasdaq Needs to Recover Quickly; S&P 500, Russell 2000 Ripe for a Bounce Higher
Declan Fallon | Apr 03, 2024 14:40
Not for the first time, we have markets edge a breakout before dipping below breakout support.
While indexes experienced heavier than typical selling on higher volume distribution, for the Russell 2000 (IWM) this amounted to a retest of cup-and-handle support, and a trend test for the Nasdaq and S&P 500.
If there was a risk of something worse, it was the potential breakdown in the Nasdaq rising trend. This breakdown will be confirmed if the index fails to recover by the close of business today.
The S&P 500 finished right on trendline support, and for day traders is the best call for a long opportunity today.
The rising trend remains our friend until proven otherwise. While yesterday's losses look damaging on paper, the opportunity on offer is one for buyers.
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.