Despite positive earnings from NVIDIA Corporation (NASDAQ:), the stock market saw little gain today. Nonetheless, the S&P 500 was the biggest gainer, though it failed to clear last week’s swing high and did not deliver a large white candlestick, despite a morning breakout gap. Technicals are still net bullish. While today’s candlestick is bearish, today’s volume ranked as confirmed accumulation, which is considered bullish. Overall, we can expect prices to increase from here.
COMPQ Daily Chart
The S&P 500 remains in a difficult spot after the ‘bull trap.’ Even though the index is within the April-May trading range, it managed to stay above 4,050 support, which was defined by February-March trading. Today’s gain was marked as accumulation, yet it was not sufficient to reverse the ‘sell’ triggers in MACD and On-Balance-Volume. Nonetheless, the S&P 500 managed to outperform the Nasdaq and is likely to continue to do so in the next few days.
SPX Daily Chart
In the meantime, the Russell 2000 experienced a minor loss that caused the index to fall slightly below its 50-day MA. This has aggravated the troubles in the On-Balance-Volume, which has been fluctuating for the last few months. However, it is not a huge issue, and a higher close is needed before the long weekend.
IWM Daily Chart
On Friday, it is ideal to have a positive finish to the end-of-week, which can neutralize the bearish aspect of today’s “black candlesticks” and the selling in the Russell 2000. The S&P 500 remains the leadership index, and there is a chance of new all-time highs by tomorrow’s close.
