the 20-period EMA on the 60-minute chart to catch up.
The Nasdaq Composite reclaimed the 50-day MA, but volume was light.
The Russell 2000 bounced into the 20-day EMA and 200-day MA, so it may need a few days of sideways action before it can clear 1,150.
The S&P 500 is about 0.5% away from the declining 20-day EMA, and about 1% away from significant resistance in the 1,955 to 1,965 area, where the lows of a prior range and the 50-day MA converge.
As far as potential ETF trade setups, we are monitoring a few breakout setups in $PIN and $FDN:
Although we sold out of Powershares India ($PIN) last week, we still like the price action, as it has held up quite well. We wouldn’t mind a little shakeout below $21, which could spark a rally that breaks the short-term downtrend line:
The Dow Jones Internet Index ($FDN) was hit hard earlier this year, but has since rallied about 16% off the lows and formed a tight-ranged consolidation above the rising 10 and 40-week MAs. The 10-week MA also recently crossed above the 40-week MA, which is a bullish sign:
The pattern in $FDN is setting up nicely and could be ready to launch higher within the next week or two. Since $FDN took such a hit off the highs, we would not look for much more than a move to the prior highs ($64ish) as a target.
On the individual stock side, Facebook ($FB) is back on our watchlist, as we are monitoring the action for a breakout above the current range high:
If the $FB breakout can hold, then a test of the prior high is likely. However, if the price action pops above $74 and fails, then $FB could easily pull back in and run some stops below the 20-day EMA.
This article is brought to you courtesy of Morpheus Trading, LLC.