Wednesday, March 20, 2019

Russell 2000 remains below its 20-day MA

The Russell 2000 experienced the second day of losses in a row as the 20-day MA remained as resistance. Relative performance accelerated lower as money rotates out of Small Caps to Large Caps and Tech stocks.


The Dow Jones is also experiencing a sharp drop in relative performance as the second swing high offers a fresh shorting opportunity. The 20-day MA is playing as resistance (for now).


The Nasdaq closed with a neutral spinning top, part of a new swing high. The MACD trigger returned to a 'buy' trigger with other technicals bullish. There's no clear trade yet but bulls have the edge.


The only concern for Tech indices was the bearish engulfing pattern in the Semiconductor index. This might come back to haunt the Nasdaq and Nasdaq 100.


For tomorrow, shorts will be trying again for the Dow Jones Index and the Russell 2000.
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You've now read my opinion, next read Douglas' blog.

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Investments are held in a pension fund on a buy-and-hold strategy.
 
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