Tuesday, May 30, 2017

Support for Russell 2000 collapses

There was little of note today with the exception of the Russell 2000. The blog headline is a bit to click-bait, but in relative terms, the Russell 2000 suffered the largest loss. The Russell 2000 took sa 0.8% hit as it bounced away from lead moving averages. The index is still caught in a larger trading range which weakens the significance of today's selling - but in a day of little change, today's Small Caps action gathered attention.


The S&P took a minor hit on higher volume. While technically, today's action counted as distribution volume, the doji made it a non-event. Breakout support held,  Technicals are healthy which keeps the bullish picture intact.


The Nasdaq also experienced tight action with higher volume churning and breakout support holding. Nothing to swing it in either direction.


The Dow remains primed for a breakout, but there was little else of merit for today.


For tomorrow, watch for a breakout in the Dow. Shorts need to watch for 'bull traps' in the Nasdaq and S&P. Other than that, recent action doesn't offer much guidance.

You've now read my opinion, next read Douglas' blog.

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Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.
 
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