Bitcoin successfully bounced off support, broke out of its channel, and is hugging its 20-day MA in a manner that suggests it will break through this soon enough too. Technicals remain mostly on the bearish side of the ledger, with only a weak MACD ‘buy’ trigger (it’s below the bullish zero line), but I do think this will eventually break higher – bringing technicals with it.
The Russell 2000 ($IWM) was the exception to lead indices as it closed with a small doji on higher volume accumulation. Technicals remain net bullish and haven’t waivered since the April low. Look for the rally to continue.
The S&P ($SPX) and Nasdaq ($COMPQ) lost a little ground after a gap higher. Volume rose in confirmed distribution, but both indices have lost their initial bullish momentum from early summer and need a demand injection to get things going again; as things stand, both are neutral.
The Semiconductor Index ($SOX) hasn’t had the same success as the Nasdaq, but has at least stayed ahead of its 20-day and 50-day MAs. Technicals are mostly bearish, but price action is really range bound, and therefore neutral.
For the coming week, bulls will likely win out and get past the near term resistance levels. Measure risk:reward by proximity to nearest suppport or 20-day/50-day MAs. A price rally will help boost technical strength. —
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Investments are held in a pension fund on a buy-and-hold strategy.
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