Indices Inch Higher
Indices didn't make big percentage moves, but gains were welcome and followed from morning gaps on higher volume accumulation.
The S&P managed to make a new closing high although it did lose relative ground against the Russell 2000 - enough to register as a 'sell' trigger. However, this is bullish for the broader market as money rotates into more speculative issues.
The Nasdaq made a clearer close at highs than the S&P but didn't enjoy the same volume boost. However, relative performance ticked higher (vs the S&P).
The Russell 2000 managed to have the best of the days action. The Russell 2000 ETF made a gap move on higher volume accumulation, registering a 2%+ gain. This came with a 'buy' signal in On-Balance-Volume and is very close to a new signal in the MACD.
I have redrawn the move in the Semiconductor Index as a broadening wedge. It's not the best pattern to work with but we will see if the 20-day MA proves to be a better measure for support.
It was a good start for Monday and today's buying helps set the tone for the week. With Indices at new 52-week highs we can now consider the sequence of doji last week as a near term support zone, along with 20-day MAs. This should be a good time for breakout stocks heading into the seasonal bullish period.
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.
Follow Me on Twitter
Investments are held in a pension fund on a buy-and-hold strategy.
The S&P managed to make a new closing high although it did lose relative ground against the Russell 2000 - enough to register as a 'sell' trigger. However, this is bullish for the broader market as money rotates into more speculative issues.
The Nasdaq made a clearer close at highs than the S&P but didn't enjoy the same volume boost. However, relative performance ticked higher (vs the S&P).
The Russell 2000 managed to have the best of the days action. The Russell 2000 ETF made a gap move on higher volume accumulation, registering a 2%+ gain. This came with a 'buy' signal in On-Balance-Volume and is very close to a new signal in the MACD.
I have redrawn the move in the Semiconductor Index as a broadening wedge. It's not the best pattern to work with but we will see if the 20-day MA proves to be a better measure for support.
It was a good start for Monday and today's buying helps set the tone for the week. With Indices at new 52-week highs we can now consider the sequence of doji last week as a near term support zone, along with 20-day MAs. This should be a good time for breakout stocks heading into the seasonal bullish period.
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.
