Wednesday, June 03, 2015

Small Caps Breakout

In a low key move, the Russell 2000 broke from its channel in a relative swing in favour of Small Caps and away from Tech and Large Caps. This is important development for bulls looking for a larger push outside of 2015 consolidations for range bound S&P, Dow, Nasdaq and Nasdaq 100.


The S&P remains caught sub-2,120. Today's attempt to break this level was again rebuffed, but action in the Russell 2000 offers another opportunity for bulls to drive a breakout tomorrow.


The Nasdaq finished pegged at 5,098 with a neutral doji. Volume was lighter, and the MACD is about to switch to a 'sell' trigger.


The Semiconductor Index is back at breakout support at 730s. It's an important opportunity to consolidate to the breakout, otherwise the risk is a new test of the 50-day MA.  Technicals are well placed for bulls, and there is an opportunity for the Nasdaq to benefit from semiconductor strength.


Tomorrow is yet another opportunity for bulls to launch an attack on Tech and Large Cap indices, as they did with Small Caps today.

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

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