Saturday, July 31, 2021

Small Loses keep reign on markets

Markets still haven't pushed on since recovering from the loses in early July.  Where we had the Russell 2000 struggling, now we have the Nasdaq looking weak.  The S&P also took a little knock after a positive Thursday.

In reality, we are probably looking at trading ranges and not any imminent collapse, and with (Covid curtailed) holidays in full swing it's hard to see where the demand buying is going to come from.

At least with the Nasdaq there was support of the 20-day MA to lean on, although it didn't offer much support earlier in the month. The MACD is still on a 'sell' trigger as other technicals stayed positive.

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Wednesday, July 28, 2021

Yin and Yang; Russell 2000 manages small gain

The Russell 2000 was one of the better performing indices on the day, but it didn't change the larger picture of an index caught in a trading range.  Today's gain was enough to see a new 'buy' trigger in the MACD as it closed on its 20-day MA.  However, until it makes its way back to trading range resistance it's hard to be optimistic - or pessimistic - as to its potential outcome.  Near term traders could trade from here for a move to channel resistance, but the whipsaw risk is high because of the trading range.

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Monday, July 26, 2021

More of the same; Russell 2000 range bound as S&P and Nasdaq lead

The weekend didn't deliver any change on Friday's position, the Russell 2000 couldn't follow the lead of the S&P and Nasdaq, instead posting yet another neutral doji. Buyer indecision for growth stocks remains a concern as the trading range remains no closer to been breached.

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New Highs in Nasdaq and S&P Don't Help Russell 2000

The indices which have done most of the leg work through 2021 were again grabbing the headlines on Friday, but the Russell 2000 was not an index joining in the fun.  Both the Nasdaq and S&P managed new closing highs, both of these indices having successfully defended breakout support in addition to Fiboacci retracements, but really - it's the Russell 2000 we need to see strength from.

The Nasdaq managed a solid test of breakout support despite the MACD trigger 'sell', although On-Balance-Volume, ADX and Stochastics are bullish, the latter indicator has been firmly on the bull's side. 

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