With some semblance of market normality restored - or at least until the deadline for 50% European tariffs passes - markets are trading back at post-election highs. The early-year dip will have rotated weak hands and those who had profits to take from buying in 2024, out of the market, leaving a new set of opportunistic buyers and long-term holders in place.
Technically, things are also looking a lot more positive after speed bumps in On-Balance-Volume and +DI/-DI.
Going from the top, we have a Russell 2000 (IWM) making a second attempt at breaking past its 200-day MA for the month of June; remember, triple reversals off resistance are rare, so look for this move higher to stick. All supporting technicals are net bullish, alongside very strong bullish momentum.
Shorts will have their work cut out trying to take profits, and any shorts left will likely have a painful Friday.
The S&P 500 went a step further and has taken out the February ’bull trap’ with a new breakout of 6,100. In doing so, the last of the technical ’sell’ signals reversed with a fresh ’buy’ in the MACD.
I wouldn’t be surprised to see a move back to test 6,100 tomorrow, but even if that did happen, a strong end-of-day finish would mark a nice end to the week.
The Nasdaq was the only index not to close with all technicals in a net bullish state as the MACD remains on a weak ’sell’ trigger.
It’s also just below all-time high resistance, although it did manage to register an accumulation day yesterday. It’s looking more like a 50:50 as to what to expect tomorrow, so look to peer indices for leads.
Bitcoin is making good headway as it looks to mount a third challenge on $110K. It has the 50-day MA to lean on support and is acting most rational (as a bullish setup) for a cryptocurrency.
The Dow Industrial Average, while lagging the S&P 500, did manage to clear a consolidation pattern as it continues to base build. There was a fresh MACD trigger ’buy’ as its technicals also returned net bullish.
Finally, the Semiconductor Index ($SOX) has managed to become the best-performing index as it posts new all-time highs of its own.
Markets have cleared most of the resistance blockers to starting a new ’bull market’. It’s now up to buyers to deliver.