Nasdaq Bulls Eye Bounce Off 50 DMA With S&P 500 Breakout Still in Play

S&P 500 News

Nasdaq Bulls Eye Bounce Off 50 DMA With S&P 500 Breakout Still in Play
US Small Cap 2000Ishares Russell 2000 ETFNASDAQ Composite
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Stocks Analysis by Declan Fallon covering: S&P 500, US Small Cap 2000, iShares Russell 2000 ETF, NASDAQ Composite. Read Declan Fallon's latest article on Investing.com

was the index to watch yesterday - it promised much - but in the end, delivered little. The larger picture still favors bulls, but daily charts are doing their best to suggest otherwise.

Yesterday, the S&P 500 started to push a breakout, but by the close of business, it had reversed back under resistance. Volume climbed to edge confirmed distribution, although technicals are net bullish. For today, we will want to see how yesterday's bearish candlesticks pan out. If we see a move into yesterday's spike highs it will go a long way to negating the implicated bearishness of yesterday. But any struggles run the risk of expanding into something worse. I still favor a larger bullish trend, but with the election coming it could be a scrappy few months ahead.

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