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Russell 2000 Continue to Struggle

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Thursday offered a bright start for markets but the Russell 2000 struggled to enjoy the fruits and by market close things were looking a little more somber. Best of the action belonged to Large Caps but it was Tech indices which started the day brightest. The Semiconductor Index gapped higher and returned inside the consolidation triangle. Had it closed near the day's highs it would have ranked as a bullish 'morning star' candlestick pattern but instead it registers as a 'bear trap'. However, this wasn't enough to stop a net turn in technicals in favour of bears. A loss tomorrow would put the 'bear trap' under threat

Markets Struggle to Rally; What Next?

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It has been a tricky last few days. The bounce in the Russell 2000 off the 20-day MA and key support of 1,705 has struggled to follow through on what should have been a strong support test.  Technicals are a bit of a mixed bag with 'sell' triggers in +DI/-DI and MACD. Today's 'doji/hammer' is perhaps the last chance saloon to see something happen here; a lower close Thursday will likely see a break of 1,705.

Semiconductor and Tech Indices Bounce Off Support

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Bulls stuck around for another day as triangle support held in the Semiconductor Index along with the Nasdaq. The Semiconductor Index returned above the 20-day MA but it came with MACD trigger 'sell'. Relative strength vs Tech Indices flatlined from July but is attempting a turn higher, albeit quite erratically. 

Nasdaq, Semiconductors and Russell 2000 Hold Support Tests

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Thursday's selling had left indices vulnerable to further losses and support breaks, not to mention a weekend of angst but indices held on - ready for a fresh start next week. The Semiconductor Index experienced the greatest loss Friday but the consolidation triangle is approaching its apex and if there is to a break (upside or down) then it's going to have to happen soon or the pattern will trade out flat. Friday did see a successful support test and a buying/short covering opportunity.

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