Wednesday, April 27, 2016

Indices Diverge

Apple's disappointment may have previously caused more of a reaction in the broader market, but today's response - outside of Tech - was muted. However, there was a divergence between Tech, and Large and Small Cap indices.

The S&P registered a small gain as 2,075 support held for a third day. Action has been very tight, but attempts on breaking 2,075 have been rebuffed, suggesting bulls are more likely to succeed in challenging and breaking all-time highs.


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Tuesday, April 26, 2016

Small Caps Recover

The Russell 2000 had the best of the action with a reversal on yesterday's losses. This is a strong vote of confidence for bulls, although channel resistance hasn't yet been breached. Rate-of-Change also remains on the bearish side of the fence.


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Monday, April 25, 2016

Late Buying Helps Large Caps. Small Caps Vulnerable

No great damage done today, but a little disappointing not to see Small Caps benefit from the late buying enjoyed by Large Cap indices. What is happening though is a gradual flattening in the technical picture, making it harder for traders to look to technical parameters for guidance.

The S&P finished near the day's high, although slightly down on yesterday's close.  Relative performance continues to lag Small Caps despite the better performance today.


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Sunday, April 24, 2016

Small Cap Gains But Tech Distribution

Small Caps were the chief winner on Friday with a near 1% gain. Such action will have pressured Shorts who may have jumped on Thursday's selling from channel resistance. Rate-of-Change is still holding to the bearish side of the market, although other technicals are bullish; relative performance in particular.


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