Showing posts from February, 2017

Profit Taking Hits Russell 2000

After successfully defending former resistance turned breakout support, the Russell 2000 experienced a relatively heavy reversal. It hasn't yet given up breakout support, but the index now finds itself back at the 20-day MA. It did so with a 'sell' trigger in the MACD and another relative loss in performance against the Nasdaq

Buyers Grab Small Caps

Traders had the weekend to study the opportunities and decided there was value to be found in Small Cap stocks.  The Russell 2000 added nearly 1% as the positive test of the breakout, 20-day and 50-day MAs expanded.  The index did see a relative performance gain, but not enough to trigger a new 'buy' in this indicator.

Buyers Keep Shorts At Bay

Just when it looks like shorts may have something to attack, buyers step in to make up the lost ground. The rally is out on a limb, but not enough to place it at the outer extremes of historic price action. So while there hasn't been any big pullback since the election, there isn't much to suggest a pullback is coming soon either. The weakest of the indices is the Russell 2000 as 2017 continues to see money rotate out of speculative stocks into more defensive Large Caps.  However, Friday did offer some healthy a backtest of former resistance turned support, and buyers have a relatively low risk opportunity to take advantage; helped by the proximity of 20-day and 50-day MAs.

Good Recovery

In early morning action it was a clear swing to sellers after yesterday's non-event. However, buyers came back and were able to make a good chunk of these losses into today's close. Large Caps remained the most attractive as defensive stocks often are during times of doubt. The S&P registered higher volume accumulation as intraday action proved to be relatively tight. The Nasdaq suffered larger losses, but there was no distribution to go with it. Technicals were relatively immune to today's action.

Market Pause

Nothing really to add to yesterday. Markets took minor hits, but there was little intraday spread. The biggest spread was in the Russell 2000 which was underperforming heading into today's session. It reversed most of yesterday's gains, but it has some way to go before it begins challenging the breakout

Semiconductors Have Best of Day's Action

The long weekend didn't give bulls reason to pause. Instead, it was gains all around. The biggest winner was the Semiconductor Index as it logged nearly double other indices gains. This was enough to return 'sell' triggers in MACD and CCI back to 'buy' triggers. It also worked the index off rising support.

Nasdaq 100 Piles on the Gains

It was another week of strong gains for the market, but it was the Nasdaq 100 which has really shone since the start of the year.  The Nasdaq 100 now sits 11.8% above its 200-day MA, with all technicals firmly in the green. The +DI line is at an extreme which is often associated with a reversal, although these reversals can be brief, as it was in November.

Another Strong Finish For Markets: Russell 2000 Breakout

While volumes have hardly been inspiring, it has been another good week for markets.  Best of the action came in the Russell 2000, which has traded sideways since the start of December and didn't kick on after the 'huge' rally following Trump's election. Today's 0.75% gain didn't look like much but it did take it above the previous set of swing highs. It also helped in that it was supported by fresh 'buy' triggers for the MACD, Slow Stochastics and ADX

S&P Holds Breakout as Tech Indices Near All-Time Highs

Aside from the light volume it was a solid finish to the week for indices. Tech Indices are very close to new all-time highs as the post-Trump rally continued its unabated ascent; the rally in the Nasdaq 100 has even managed to stay ahead even of its 20-day MA. The only concern for Nasdaq 100 is the loss in relative strength against the Russell 2000, although this hasn't flipped negative. Despite this, a push above 5,172 is likely to trigger short covering and another buying surge.

Bulls Struggle on Volume

There wasn't a whole lot of action in terms of price movement, but what action there was came on heavier volume and reflected a lack of buyer strength as they struggled to challenge last week's highs. Of the indices, the Dow Jones flashed a 'bull trap' to join another in the Russell 2000:


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