Hard To Get Excited As Rallies Continue
Things tick along in markets with little fanfare; the Nasdaq and S&P both registered gains, but the Russell 2000 took a small loss - but not enough to reverse the breakout.
The small loss in the Russell 2000 also came with registered distribution, but not overall volume was light - so probably not too damaging. To compound the weakness there were 'sell' triggers in the MACD and On-Balance-Volume to go with the ongoing underperformance of the index relative to both the S&P and Nasdaq.
The S&P registered a small accumulation day, but the gain didn't fend off the MACD trigger 'sell' from earlier last week. However, one indicator which did kick off strongly in bulls favor was Rate-of-Change (ROC); after weeks around zero there was kick towards +8.6%.
The Nasdaq also registered a surge in ROC, but it's already well above the bullish zero line. The MACD is bullish along with other technicals.
The one index which may offer buyers a trade is the Dow Jones Industrial Average. There was a bounce off breakout support which also coincided with a successful test of the 20-day MA. Other technicals sre green although the MACD is on the verge of a 'sell' trigger - but there should be enough for bulls to work with.
Going forward, buyers maintain an edge but for how long can it continue? Until we see a more pronounced turn in technicals, particularly the long standing accumulation trends in On-Balance-Volume, then further price gains look likely.
You've now read my opinion, next read Douglas' blog.
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