Week 30 Market Roundup — False Breakout vs Backup action in S&P 500?

The reaction from last week specifically on Thursday and Friday created a potential false breakout scenario (or up thrust) in S&P 500, Russell 2000 and Dow Jones. The reaction was accompanied by increasing supply, which was bearish looking at the first look.

However, with volume spread analysis (VSA), we notice that Friday’s bar showed smaller spread with similar or slightly higher volume, suggested presence of the demand in S&P 500 and Dow Jones and NASDAQ. A rally is expected in order to confirm the presence of…