Monday offered bullish piercing patterns, and it was Tuesday that delivered with opening gaps and strong closes that moved above June highs. This brings markets closer to breaching all-time highs. It’s interesting that the selling pressure on US action is Iran was less than the buying pressure triggered by the "ceasefire", so you can see markets ’want’ to move higher more than they want to succumb to selling pressure.
The S&P 500 has reached a point where it’s now challenging the ’bull trap’ from February. There are still ’sell’ triggers in the MACD and On-Balance-Volume to work off, but look for an additional kick-off breakout.
The Russell 2000 (IWM) is up, challenging its 200-day MA after Tuesday’s gains. There are nascent ’buy’ triggers in +DI/-DI and On-Balance-Volume and strong bullish momentum. The building of right-hand-base is well underway, and given gains in peer indices, it should continue higher.
The Nasdaq also gapped higher, but hasn’t yet challenged all-time highs or 20K psychological resistance. Technicals, aside from the MACD, are bullish. The Nasdaq is well-positioned to post new all-time highs.
Before the Israeli-Iran action, markets were well primed to kick on and break to new all-time highs.
And while sellers were keen to take advantage, they were unable to push markets to a point where there was a significant breach in support. When the ceasefire was announced, traders used that as a catalyst to take indices beyond their earlier narrow trading range. A push beyond all-time highs will mark a true breakout and the start of a new bull market.