Tuesday, August 23, 2016

Small Caps Breakout

Markets made a break higher, although only the move for Small Caps stuck.  The Russell 2000 managed to finish with a new closing high and is very close to a fresh MACD trigger 'buy'. There was a significant gain in relative performance of Small Caps against Large Caps and Tech.


The S&P started well, but it drifted back inside its range.  However, there is still a gap breakout to defend.


It was a similar story to the Nasdaq where early gains faded through the day. Today's action registered as a neutral 'doji'.


The Semiconductor Index experienced similar action as for the S&P and Nasdaq, but it managed to close the day with a MACD trigger 'buy' on new highs.


Tomorrow will be about Small Caps continuing the gains kicked off today. If these can be maintained in morning trading it will help bring the S&P and Nasdaq with them. Any shorts will be feeling the squeeze which will only add to buying pressure. With holiday trading still very much in play it's hard to see sellers making much of a mark.

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

I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".

If you are new to spread betting, here is a guide on position size based on eToro's system.


Share on StockTwits

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter




Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.

 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c