Just as losses were softened by the range-bound aspects of lead markets, the same goes for Friday’s gains. The managed a retest of what was a ’bull flag’ with technicals net bearish.
The tagged range support on low volume, but closed the day on a neutral doji. Technicals remain mostly bearish but the index is enjoying a relative performance advantage over the Nasdaq.
The Nasdaq finished with a ’spinning top’ candlestick that tagged the February low, but not enough to break it. Larger support remains at the November swing low which may see a test early this week. Technicals are net bearish but not fully oversold either, although a test of November lows would do this.
is in an odd position. The low-volume retest did stage a rally, but the rally wasn’t accompanied by any meaningful volume and is at risk of failing out. Technicals have moved out of a net bearish picture with a new (weak) MACD trigger ’buy’. The measured move target down remains one to watch for, although I think a larger rally is not far away.
For this week, Bitcoin is probably the trade of choice as the risk:reward favors longs. The back-and-forth of lead indices inside trading range levels leaves them in neutral territory – neither long nor short.