Nasdaq, S&P 500 Bulls Eye Follow-Through Today; Russell 2000 Gaps Below Support
Declan Fallon | Apr 12, 2024 16:45
Yesterday belonged to the Nasdaq with Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) key contributors to the gains. The index is now challenging the 'bull trap' after recent struggles.
Again, we will likely see sideways action, but if there is a follow-through over the coming days it will mark a confirmed follow-through for the index.
On the other side of the coin, the Russell 2000 (IWM) gapped below trendline support, closing with a second of two doji. I would be a little more positive on these supposed neutral candlesticks as it marks a failure by sellers to push the breakdown.
The S&P 500 was able to ride some of the Nasdaq positivity, returning above breakout support, but still has work to do to challenge all-time high levels. Supporting technicals remain negative with minimal improvement despite yesterday's price gain.
Markets have bounced back well from the CPI sell-off, helped by better PPI data and the action of Tech giants. The Nasdaq has swung into a leadership role, marked by a strong uptick in relative performance to peer indexes. Certainly, these gains mean the Nasdaq will hog most of the attention over the coming days.
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