Monday, November 30, 2020

Russell 2000 sees some selling

There wasn't too much damage done to the gains made on Friday's junior trader watch. Volume was up significantly across indices to register today as a distribution day, but the relative price loss was small.  Only action in the Russell 2000 left a mark on the chart.

Even with the selling in the Russell 2000, it remained well above breakout support and held a significant performance advantage relative to the S&P and Nasdaq. Technicals remain favorable with no major bearish divergences to be concerned with. 

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Tuesday, November 24, 2020

Nasdaq and S&P make key gains

Important day for the indices with the S&P again pushing into the spike high of the Bearish inverse hammer. Volume climbed to register an accumulation day as buyers found some footing on the back of bullish net technicals.

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Sunday, November 22, 2020

Russell 2000 Holds Gains

There wasn't a whole lot of change to the week for indices but it was good to see the Russell 2000 hang on the gains generated by Monday's gap higher. Better still, it looks to have killed the bearish implications of the previous week's bearish black candlestick. All we need now is some follow through higher, helped by some strong technical support - including excellent relative performance.

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Wednesday, November 18, 2020

S&P and Nasdaq Again Can't Get Past September Highs

Why the focus on the September highs? Because they came with extremes in breadth metrics for the S&P and Nasdaq - marking levels typically associated with a major top. The action from Monday had looked like it was going to end the consolidation established from the September peak but again it was not to be. Today is not the start of a crash, but it is disappointing. 

The S&P is back at breakout support on the back of heavy volume distribution. The loss added to the relative loss against the Russell 2000. While today marked a loss, the presence of support hasn't totally negated bullish opportunity. 

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