Small Cap Weakness Spreads

Sellers took a third day of selling out of the Russell 2000 and this weakness made its way to the S&P and Nasdaq. The selling is more problematic for the Russell 2000 because there is a genuine lack of conviction from traders wanting to pick up an index which is trading at a deep discount to its peers.

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Neutral Friday although Russell 2000 wobbles

Options expiration skewed volume action but it was a relatively neutral day.  Only the Russell 2000 suggested a more bearish undertone existed in the market.

The S&P is currently probing its April high so it's of no surprise to see a small 'gravestone' doji appear on this test. I would be happy to see a small consolidation handle (ideally holding the 50-day MA) as a preparation for a push to new all-time highs but don't be surprised if the market doesn't wait for this. This rally has merit with excellent relative performance and an accumulation trend in volume.

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Markets Consolidate Tuesday's Gains

It's looking like markets are keen to challenge April highs. The narrow consolidations which built up over last week was cleared by Tuesday's gains and held these highs by Wednesday's close.

For the S&P, this came with an accumulation day. Other technicals are net bullish.

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Small Gains Continue Market Consolidations

Not a whole lot offered by indices, but what was offered had more bullish overtones than negative.

The Nasdaq continued with its shaping of a bullish handle. Volume climbed a little in registering an accumulation day. The index still has to put some distance from its 50-day MA but once it does and mounts a challenge on April highs it could really pick up momentum. On a more subtle note, there was an uptick in relative performance.

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