Markets Mixed Bag as Bitcoin Breakout Falters
Global markets are in a mixed state, with some indices struggling to recover from oversold conditions while others remain in trading ranges. The Russell 2000 index is racing towards its 200-day moving average (MA) after failing to reverse at an early September swing low.
The equal-weighted S&P 500 also faces potential trouble, with a small hammer on Tuesday offering little confidence in the market's direction. A break above 8,500 could lead to an aggressive long position, but traders must be cautious of a crash scenario emerging from deeply oversold conditions.
On the other hand, the weighted S&P 500 is holding its 20-day MA and has yet to challenge 7,800, as expected in the wake of September's 'bear trap.' Technicals are mixed, but stochastics for the weighted S&P have not yet challenged the bullish mid-line.
Meanwhile, Bitcoin blinked after Monday's move lower and failed to recover on Tuesday. With demand insufficient at $82.5K to sustain a third test, a close below this level could signal a new 'bull trap' and a potential test of 77K.