The long-term ’buy’ signal in has paid dividends (for now), and given those who wanted a short-term trade a solid boost. It will ease back over the coming days, but long-term buyers can safely hold as it’s unlikely to come back to 65K anytime soon. As I mentioned before, this is a successful test of the 200-week MA. Only upside remains.
The (IWM) is playing to a ’bull trap’ with converged 20-day and 50-day MAs working as support. ’Bull Traps’ are reliable reversal patterns, but until the supporting moving averages break, I would side with bulls. Technicals are mixed, with ’sell’ triggers in the MACD and +DI/-DI, but not enough to ring the bearish bells.
The is holding breakout support, although it has a mini-’bull trap’ of its own to contend with. Even if losses were to continue, there is a 50-day MA to provide support. For those looking for a long-trade opportunity, the S&P is it.
The is, and remains, range-bound. Like the Russell 2000 ($IWM) it sits on converged support of 20-day and 50-day MAs. Technicals are mostly negative, but there remains a good chance buyers will step in at the moving averages, despite the trading range.
The has been in pullback mode since doubling from April to June. Fib retracements did not mark the full 61.8% retracement, but a secondary move down to test the 200-day MA (and confirm the 61.8% retracement) would be a solid buying opportunity.
Indices trading near moving averages are still buying opportunities. Breaks of these moving averages mean staying on the sidelines; at least until 200-day MAs or trading range support is tested.