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Nasdaq, S&P 500 Bulls Eye Follow-Through Today; Russell 2000 Gaps Below Support

Published 12/04/2024, 07:45
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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.

COMPQ-Daily Chart

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.

IWM-Daily Chart

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.

SPX-Daily Chart

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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