Thursday, April 22, 2021

Yesterday's gains reversed

Since the last update there has been a bit of back-and-forth for the indices. The Nasdaq had bounced off breakout support yesterday before it quickly gave up those gains. It was a similar story for the S&P, although this index trades well above its key moving averages.  The Russell 2000 experienced the lightest loss, although its struggling to clear its handle. 

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Monday, April 19, 2021

Minor losses across indices

Indices eased back on recent gains, but nothing to raise a concern for the health of the broader rally. It would be too easy to overplay the losses - especially given trading volume was light - so best to let it play out over the coming days. 

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Sunday, April 18, 2021

Large Caps continue gains

Friday saw the S&P and Dow Jones Industrials continue to post gains as other indices drifted along in narrow trading. 

The S&P is on a ribbon rally of small, steady gains that brings its relationship to the 200-day MA to 16.1%, which is between the 99% to 95% of historic price extremes; this is a rally which is running hot.  There is no slowdown in technical strength, or bearish divergences to worry about, and relative performance remains good after an extended period of underperformance - so no reason to not see this rally continue despite its extended nature.

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Thursday, April 15, 2021

S&P gains in response to yesterday's quiet action

Buyers took advantage of yesterday's S&P light losses to push the index to new highs. Today's buying was enough to register it as a day of accumulation with good relative performance. Shorts have little to work with, which makes it an easy win for buyers and existing longs.

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