The markets continued their rallies, today. While the S&P 500 still remains in its two month trading range, the NASDAQ Composite broke above a flag pattern – a bullish sign.
S&P 500 Daily Chart
The S&P 500 rose over 3% on higher volume. However, despite the three-day move that defied a breakdown from a head-and-shoulders pattern, the S&P 500 is still only about 15 points from resistance levels. The S&P 500 will need to break out of this trading range to establish a new trend. However, the bearish pressure that plagued the market last week is giving way to the bulls.
Nasdaq Composite Daily
Meanwhile, the NASDAQ Composite has broken above its trading range on increased volume. The rise in volume on the breakout is essential for the breakout.
The next few days will continue to be important for the S&P 500 to take a side, the bullish shift in the NASDAQ Composite can allow traders to go long technologies,
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I am an amateur trader and investor with over 15 years experience in the stock market. I was bred to be a fundamentalist and followed fundamental analysis until 2009. Following the 2007-2008 bear market, I began to shift from a buy-and-hold strategy to trend-following techniques.