Markets in Flux as Key Indices Test Moving Averages

The markets are presenting a mixed picture, with some indices struggling to bounce back from oversold conditions while others remain in trading ranges.

The Russell 2000 index is heading towards its 200-day moving average (MA), which could be a test of the early September swing low's failure. The equal-weighted S&P 500 closed Tuesday with a small hammer, but the 200-day MA is looking like a more likely target for a potential breakout.

The weighted S&P 500 is holding its 20-day MA and has yet to challenge the $7,800 level, which some had expected following the September 'bear trap'. Technical indicators are mixed, with stochastics for the weighted S&P 500 yet to test the bullish mid-line, while those for the unweighted S&P are deeply oversold.

Bitcoin is maintaining its breakout but faces a crucial test at $82.5K. A close below this level could signal a 'bull trap' and prompt a test of $77K.