Friday was a bit of a mixed bag. It was good to see the S&P 500 breakout, but it also coincided with a Russell 2000 (IWM) that closed on a 'black' candlestick at downward channel resistance.
In the case of the S&P 500, Friday finished with an accumulation day to go with a MACD trigger 'buy' and stochstic [39,1] bull crossover, following on from the earlier On-Balance-Volume 'buy' signal.
The chief point of weakness is the doji marking the breakout. This is a neutral candlestick and represents indecision - leaving doubt as to the validity of the breakout.
The Russell 2000 ($IWM) finished with a bearish black candlestick at channel resistance, making it hard to look beyond a weak start for next week.
There is a weak MACD tigger 'buy' (below the bullish MACD line), and On-Balance-Volume is carrying a 'buy' trigger. However, momentum as measured by stochastics is firmly on the bear side.
The Nasdaq edged a breakout on a doji, like the S&P 500, but it only has a bullish uptick in stochastics to look too. Friday's volume did register as accumulation.
The Semiconductor index remains a scramble, but it has at least returned above key moving averages.
Technicals are net positive, although they are as erratic as price action. I think a push above 5,440 is needed to clear the quagmire and put some direction on the index.
For the coming week, we will want to see breakouts in the S&P 500 and Nasdaq firm up with something more substantial than Friday's doji. Technicals are improving, but there is more to do before there is a broader net bullish picture. The start point will be a required breakout in the Russell 2000.