Waiting On Russell 2000 Leadership
The Nasdaq looked like it was going to breakout on Friday and take out the key swing high from September. It wasn't able to do so then, and it may do so Monday, but until then we have to wait-and-see. Volume action is healthy with increase buying and net bullish technicals.
Eyes are on the Russell 2000 as it had managed to breakout last Thursday. Sellers took over things on Friday, but not enough to reverse the breakout. In the absence of the breakout in the Nasdaq we have to look to the Russell 2000 to hold on to its gain. While technicals are net positive we do have a relative performance loss for Small Caps against Tech and Large Cap stocks.The S&P hasn't quite managed to make the same gains as the Nasdaq, and its rally stalled before it could challenge the prior swing high. Technicals are net positive and the index is starting to make up relative ground against the Russell 2000 after a month of under performance.
You've now read my opinion, next read Douglas' blog.
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