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S&P and Nasdaq Posts Gains To Maintain Consolidation

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Both the Nasdaq and S&P posted small gains after yesterday's to keep the consolidation intact and return both indices above their respective 50-day MAs. Buying volume was down for both indices. Nasdaq technicals remain net bearish, although momentum for the S&P is bouncing off the midline - an area of support in a cyclical bull market.
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Upcoming "Death Cross" for Russell 2000 ($IWM)

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There was some modest buying today from the open, but volume was light and markets are below trading range support established during the latter part of 2024. It's hard to see where the buyers are going to come from given the chaos of Trump. I should add, I listened to Josh Brown's The Compound podcast and he showed an interesting chart of market returns in April-May in the year following a strong return in markets; in essence, selling to pay capital gains tax. Given the precarious nature of markets, and the possibility for this seasonal factor to play out, it's likely we have a couple more months of downward action before value buyers return. If we look at individual markets, the Russell 2000 ($IWM) is looking like the first to signal a long term shift in favor of bears with an upcoming "Death Cross" between the 50-day MA and 200-day MA - perhaps completing before the end of the week. Technicals are net bearish and the volume trend has collapsed since the st...
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S&P Joins Nasdaq With Net Bearish Technicals

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It's not all doom-and-gloom, but there is a split between the Russell 2000 ($IWM) and equal-weighted S&P ($SPXEW) and the Nasdaq ($COMPQ) and weighted S&P ($SPX). It's still unclear which side will win out, but we can play each trade as it stands. The S&P dropped below its 50-day MA on higher volume distribution, enough so that it's now considered to be net bearish. The index is outperforming the Nasdaq, but unless there is a quick recovery this index will drift back to 7K; shorts can place a stop above its 50-day MA.
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Sellers Appear As Support Comes Under Pressure

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It was going to happen at some point but sellers have come out of the woodwork. Tech was hardest hit, but there is plenty of support for indices to work with. The Russell 2000 ($IWM) was one of the least impacted by the selling. It staged a mini-breakout, while today's inverse hammer came on higher volume accumulation it's still in a position where it could go either way.
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Russell 2000 Fresh Breakout

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A quiet start to the week with only the Russell 2000 ($IWM) suggesting it could be on the move (higher). Today's action registered as a breakout, albeit on low volume, but with technicals net positive. The Russell 2000 has been outperforming the Nasdaq since the start of June, so it has the interest of market participants and is the best placed for those seeking new long trades.
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Bitcoin Continues To Lose Ground As Indices Stabilize

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Bitcoin continues to play dead as indices hold their ground. The 20-day MA of Bitcoin is resistance as today's selling places it on course to test 60K (again), although I suspect the next test will fail, it's too recent a test since the February low test bounce. Only the MACD is offering a weak 'buy'.
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Tweezer Top In Equal Weight S&P - Double Top Semiconductors

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Back from holiday, and indices flash another round of topping patterns following earlier patterns which were breached, so while one could go short, you don't want to be holding if pattern highs are breached. While I missed the annoucement, the real shocker was the multi-decade lows posted by the Consumer Sentiment Survey - perhaps one of the few legitimate data points that can be trusted. In the past, this has been a bullish signal as the low in sentiment preceeded the low in markets - but markets are at multi-year highs, so I have no idea what will come next.
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Bitcoin Collapse Goes Against The Grain

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Indices are all doing what good indices should in a bull market, but Bitcoin has taken a sharp move down following the rejection at the 200-day MA (and subsequent break of the 50-day MA). As to which side of the coin wins out remains to be seen, but given cryptos relationship to the tech sector it's hard to see how each could continue in their respective directions without at some point aligning. Last week, the Russell 2000 ($IWM) staged a new breakout beyond $287 and then preceeded to trade in a narrow range on low volume. Expectation is for this to continue higher, but a loss of $287 would open up the potential for a 'bull trap' and set things for a move to $270. Technicals are net positive, but the MACD is shaping a bearish divergence.
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