Intel stock extends gains after report of possible U.S. government stake
There wasn’t a whole lot going on with indices. There was a solid follow through in the Russell 2000 (IWM) yesterday that gives the index wiggle room to support. The Nasdaq and S&P 500 maintained their breakouts. The one fly in the ointment was Bitcoin ($BTCUSD). There was a confirmed ’bull trap’ with an undercut of breakout support on higher volume selling distribution.
The Russell 2000 ($IWM) is only starting to kick on in relative terms after a summer of underperformance. It remains the index most likely to kick on and is perhaps the best trade opportunity.
If you are a breakout trader, then the Dow Industrial Average ($INDU) is your best bet. It’s sitting on the verge of a resistance break with new ’buy’ signals in the MACD and ADX.
While we are seeing a bit of a divergence between the Nasdaq and Bitcoin, we are seeing a potential, upcoming ’buy’ signal in the Nasdaq Summation Index ($NASI) - although technicals are net bearish (but oversold).
If you are short trader, then look to attack any rally in Bitcoin. If you are bull, prepare for a breakout in the Dow Industrials or a (long) trend play in the Russell 2000 ($IWM).