Black Friday Sale! Save huge on InvestingProGet up to 60% off

Nasdaq Still to Confirm Breakout, S&P 500 Fails to Test Resistance

Published 11/05/2023, 05:26
US500
-
DJI
-
US2000
-
IXIC
-

Hardly inspiring, but it was a price breakout. The Nasdaq edged itself above resistance, but it will need to do more to confirm. There was a MACD trigger 'buy' with generally improved technicals - although On-Balance-Volume remains bearish. Today's candlestick was not exactly blowing it out of the water, but it did qualify as a breakout.

COMPQ Daily Chart

Things get a little sketchy when we dig into some other indexes. The S&P 500 didn't get to challenge resistance but did finish with a dragonfly doji, typically, this is important during a swing low, but it has less relevance when it appears as part of a trading range.

SPX Daily Chart

The Dow Jones Industrial Average wasn't so lucky, although it looked much worse off earlier in the day. The 50-day MA looks key for support.

INDU Daily Chart

The Russell 2000 ($IWM) finished with a bearish 'black' candlestick just below 50-day MA resistance. However, because this index is stuck in a trading range, the significance of this potentially bearish candlestick is reduced. On the plus side, there was a MACD trigger 'buy.'

IWM Daily Chart

We need to be careful here. There was a breakout, but it remains vulnerable to a 'bull trap.' It will only take a close below resistance to confirm (for the Nasdaq). But, a decent gain tomorrow (in the Nasdaq) would firm up the move and help drive demand for the S&P and Russell 2000.

Latest comments

Loading next article…
Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.