Russell 2000 continues to be a Rollercoaster
Sellers made a return but it wasn't anything too damaging. The Russell 2000 had attempted a 'bull flag' breakout but was rebuffed to fall back inside the consolidation and close to yesterday's lows. This still looks to be mapping a consolidation and it may need a test of the 50-day MA to drive a fresh rally. The only concern is the rapid loss in relative performance but everything else looks okay.
The Nasdaq suffered the largest profit taking episode as it clocked up a distribution day on a bearish 'cloud cover'. This occurred away from resistance so it may not be too damaging but it could be the start of yet another pullback.
The S&P had a relatively tight day on light volume. It's on the upper part of a breakout but not far enough past new support to confirm as one.
What's helping both the S&P and the Nasdaq is the stronger relative performance of the index compared to the Russell 2000. While this relationship remains intact money flow should favor Large Caps and Tech and therefore a continuation of their rallies.
You've now read my opinion, next read Douglas' blog.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
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Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.
The Nasdaq suffered the largest profit taking episode as it clocked up a distribution day on a bearish 'cloud cover'. This occurred away from resistance so it may not be too damaging but it could be the start of yet another pullback.
The S&P had a relatively tight day on light volume. It's on the upper part of a breakout but not far enough past new support to confirm as one.
What's helping both the S&P and the Nasdaq is the stronger relative performance of the index compared to the Russell 2000. While this relationship remains intact money flow should favor Large Caps and Tech and therefore a continuation of their rallies.
You've now read my opinion, next read Douglas' blog.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.
