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Minor Losses Keep Markets Near Highs

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While markets registered losses of just over 1%, there was no real damage done to the indices. The Nasdaq was one of the worst hit on the day, but the mini push to a new swing high is still intact; the 20-day MA is the support level to watch. 

Good Days Continue

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There was a strong close to last week with markets finishing at new highs.  The Russell 2000 was a bit of an exception as it closed just a little down on Friday, but not before spiking at a high.  The Russell 2000 ($IWM) did register as a distribution day on Friday, but the net effect was relatively minor compared to previous buying. Technicals are all net positive with relative performance still doing well against the Nasdaq and S&P.  The index is 36% above its 200-day MA, where just 22% is enough to place it in the 99% area of historic price extremes; a move to mean reversion will happen soon.

Russell 2000 gains nearly 4%

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A big divergence in markets as the Russell 2000 wakes from its slumber to close at a new high while the Nasdaq is busy testing its lows. The Dow Industrials joined the Small Caps party, while the S&P was caught in the middle.  It's an odd juxtaposition given the divergence between the indices, with the Russell 2000 so far extended beyond its 200-day MA. Maybe it's the start of a blowoff top, but there was good volume with today's buying - registering it as confirmed accumulation. 

The Year Starts With Selling

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The first day of the New Year starts with selling on heavier volume distribution.  Today may be the start of something, but one day's selling does not make a crash.  For the Nasdaq, we have the MACD trigger 'sell' but still a bullish cross in relative performance to Small Caps. The selling was looking bad but buyers were able to step in at the 20-day MA. 

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