Markets Weaken with Russell 2000 Leading Lower
That one-day bounce in the Russell 2000 last week is looking like a long time ago as today finished with a cut below its 50-day MA. Technicals are fading fast as relative performance begun a cliff fall. While other indices haven't shown this same level of weakness it's a worrying start as Small Caps typically lead. The slower channel remains intact so it's not a full on reversal yet.
The Nasdaq 100 started brightly and looked to have generated a solid move to challenge its bull trap before sellers pushed it back to its starting point - leaving a 'gravestone doji'. While the Russell 2000 struggled the weak finish for the Nasdaq 100 wasn't enough to register as a support break.
The Nasdaq had already lost support prior to today but there was no acceleration to the downside.
The S&P left another 'bull trap' in its wake but didn't give up (newer) channel support; it's still a long way from the long-standing summer channel - illustrated by the thin blue line.
For tomorrow, keep an eye on the Russell 2000. It looks like it wants to lead lower and this will be bad news for other indices. If there is to be a bullish surge then the Nasdaq 100 will be the index most likely to lead out.
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 education on eToro and can be copied for free. Investments are held in a pension fund as buy-and-hold.
The Nasdaq 100 started brightly and looked to have generated a solid move to challenge its bull trap before sellers pushed it back to its starting point - leaving a 'gravestone doji'. While the Russell 2000 struggled the weak finish for the Nasdaq 100 wasn't enough to register as a support break.
The Nasdaq had already lost support prior to today but there was no acceleration to the downside.
The S&P left another 'bull trap' in its wake but didn't give up (newer) channel support; it's still a long way from the long-standing summer channel - illustrated by the thin blue line.
For tomorrow, keep an eye on the Russell 2000. It looks like it wants to lead lower and this will be bad news for other indices. If there is to be a bullish surge then the Nasdaq 100 will be the index most likely to lead out.
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 education on eToro and can be copied for free. Investments are held in a pension fund as buy-and-hold.
