Small Changes Don't Make Headlines But Breakouts Maintained
Today's action was quietly bullish. The fact none of the indices lost significant ground after pushing breakouts is of greater significance - suggesting few traders are willing to sell. As we approach end-of-year we have the Santa rally to look forward too. In reality, if sellers do make an appearance then we will want to see breakout support hold on a test (should a test occur).
The Nasdaq is making up lost ground against the Russell 2000 as other supporting technicals remain net positive. The September high has been breached, neutralizing the outlook for a major top then, but with the index now riding 18.2% above its 200-day MA we now have to consider a new major top count; currently, we are in the 90% historic range of overbought action.
Likewise, if we look to the S&P, we had a small gain which left the index 14% above its 200-day MA; this similarly puts the index into the 90% zone of historic price action. Not surprisingly, technicals are net positive. It still has some work to do to make back its relative losses against the Russell 2000.You've now read my opinion, next read Douglas' blog.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Investments are held in a pension fund on a buy-and-hold strategy.
.