Wednesday, September 07, 2016

Small Caps Add To Gains

There wasn't a whole lot of action in markets today. The absence of selling is good news for bulls (more so than the absence of buying is good news for bears). The Russell 2000 was one exception as it gained 0.6%, closing near its highs. Watch for a MACD trigger ' strong buy' in the coming days. The relative performance of the index continues to outperform.


The Nasdaq wasn't far behind as it made small gains, but enough to finish near the highs of the day. While the percentage gain was small it did finish with confirmed accumulation.


Large Caps had the quietest day of the lead indices, effectively holding station. However, the action does appear to favour bulls (speaking as someone with a non-confident, but minimal risk, short position in play).


For tomorrow, it will be a chance for bulls to spread the love from Small Caps and Tech to Large Caps (taking my short position with it). I would like be to wrong, but tight action suggests the next grind will be higher.

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

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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.

 
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