S&P 500 Tests Key Breakout Support - A Breakdown Here Could Trigger a Bull Trap

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S&P 500 Tests Key Breakout Support - A Breakdown Here Could Trigger a Bull Trap
US Small Cap 2000Ishares Russell 2000 ETFNASDAQ Composite
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Stocks Analysis by Declan Fallon covering: S&P 500, US Small Cap 2000, iShares Russell 2000 ETF, NASDAQ Composite. Read Declan Fallon's latest article on Investing.com

This is an important test because if the S&P 500 were to lose breakout support it would open up for a bull trap.The Nasdaq has drifted back to the breakout gap, also near the 50-day MA. I'm not sure there is enough between yesterday's and the day before yesterday's spike lows to suggest a"tweezer" bottom; a reliable reversal pattern. Watch up for an open above yesterday's close to set up a day-long rally.

For today, the S&P 500 is the index to watch. It will be important for breakout support to hold, although an intraday violation of this support level is acceptable. As for the Nasdaq and Russell 2000 , it could go either way.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

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