Showing posts from July, 2020

Semiconductor Breakout But Trading Volumes Tepid

Not a whole lot to report for today although the Semiconductor Index did register a breakout. This was supported by a relative performance gain against the Nasdaq 100, and this should help Tech indices maintain their market leadership. The only disappointment was the maintenance of the 'sell' trigger in the MACD.

Low Key Losses Change Little

Aside from the Nasdaq which broke through rising channel support, other indices remain caught along breakout support.  The Nasdaq is on a 'sell' trigger in the MACD and a relative underperformance against the Russell 2000, but it has already outside of its rising channel where an opportunity to accelerate losses has not yet been taken. 

Nasdaq Breaks from Rising Channel

There has been a slowing of the rising trend in the Nasdaq, to the point it has dropped outside of its four month rising channel. This should not be viewed as outright bearish, but simply a slowing of the advance - and probably a sideways shift in a trend consolidation.  The edge breakout in the S&P has drifted back to support and will find itself under threat should such losses continue in the Nasdaq. Selling volume has been light and the strong accumulation trend in On-Balance-Volume has not been adversely impacted by this selling. The index - as with the Nasdaq - is underperforming relative to the Russell 2000, which may help it in the long term when money again cycles back to defensive stocks.  The Russell 2000 has been trying to clear its base (within a base) but has so far struggled. Trading volume has fallen off a cliff compared to the volumes from March so if a breakout is to stick we will need to see much stronger buying volume. On a positive front, On-Balance-Volume is st

S&P Nudges Breakout

The S&P didn't break resistance with any great fanfare and the move lacked volume, but a breakout is a breakout. Technicals are in good shape with bullish momentum particularly strong, and a three month rising accumulation trend.

S&P Edging a Breakout?

The S&P made a small gain but it may have been enough to register it as a breakout. Volume was light but the sentiment was not. The gain was enough to return a relative performance advantage against the Russell 2000

Still waiting for S&P and Russell 2000 Breakouts

Friday offered a low key finish to the week with both the S&P and Russell 2000 left much as they were on Thursday - ready to breakout. Technicals are net bullish, with the Russell 2000 enjoying a relative performance advantage against both the Nasdaq and S&P.

Russell 2000 Readies For Breakout

The past couple of days have been good for the Russell 2000. There is a bit of upside momentum in addition to an acceleration in relative performance against market leading Nasdaq. All supporting technicals are positive, including a fresh MACD 'buy' trigger today. It's a good time for Small Caps. 

S&P Breakout Wait Continues...

One step back - one step forward. The S&P made back most of yesterday's losses on slightly lighter volume than the previous day's distribution selling. The breakout has yet to occur but today's gain keeps that possibility intact. 

S&P Readies for Breakout

With the week behind us the S&P stood poised to break to new highs for the recovery rally,  following the lead of the Nasdaq which is already posting new multi-year highs. The Russell 2000 is looking a little more tentative as it remains below its 200-day MA on bearish MACD, ADX and relative performance.

Nasdaq Moves To Challenge "Gravestone Doji" High

The Nasdaq has been leading indices throughout 2020, even the sell-off caused by Covid19 was not as bad as was inflicted on the Russell 2000 or S&P. The latest gains are challenging the most recent swing high which was marked by a "gravestone doji" in addition to building on the break of 10,000. On-Balance-Volume is leading the indicators with a strong accumulation trend. 


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