Small Caps Ready to Pop as Indices Gain
The S&P maintained bullish pressure with a small gain, a gain sufficient to mark a new closing high. Technicals are generally bullish, although the MACD has flat-lined.
The Nasdaq is similarly trading into a tight congestion and while Friday's finish suggests higher prices ahead I have marked a possible short based on the convergence of support and resistance. A closing break above 8,150 resistance would negate the short.
The Russell 2000 had the best of the action as it pushed a 1% gain off converged 20-day, 50-day and 200-day MAs. The index is nicely primed to gain tomorrow or Tuesday but for this to be sustainable it's going to take a few days of strong buying to reverse the relative underperformance of this index to the Nasdaq and S&P.
The Semiconductor Index had engaged in a reversal but Friday's higher finish relative to the open has offered a stronger picture than might have been expected after the breakout.
For tomorrow, look for Small Caps to lead broader markets higher.
You've now read my opinion, next read Douglas' blog.
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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.
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Investments are held in a pension fund on a buy-and-hold strategy.
The Nasdaq is similarly trading into a tight congestion and while Friday's finish suggests higher prices ahead I have marked a possible short based on the convergence of support and resistance. A closing break above 8,150 resistance would negate the short.
The Russell 2000 had the best of the action as it pushed a 1% gain off converged 20-day, 50-day and 200-day MAs. The index is nicely primed to gain tomorrow or Tuesday but for this to be sustainable it's going to take a few days of strong buying to reverse the relative underperformance of this index to the Nasdaq and S&P.
The Semiconductor Index had engaged in a reversal but Friday's higher finish relative to the open has offered a stronger picture than might have been expected after the breakout.
For tomorrow, look for Small Caps to lead broader markets higher.
You've now read my opinion, next read Douglas' blog.
---
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
Investments are held in a pension fund on a buy-and-hold strategy.
