Thursday, July 16, 2020

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. 

The S&P is another index trying to break resistance and emerge from its ascending bullish triangle. It had looked like it was going to lead out the Russell 2000, but with a relative performance shift in favor of Small Caps it may have to wait. Core technicals are all bullish, including a strong accumulation trend.

The Nasdaq had a low key day. It finished the day with a small doji in the middle of its rising channel.  There was a weak MACD trigger 'sell' - weak as the metric has effectively flatlined, making whipsaw signals a real concern.

Going forward, the S&P and Russell 2000 are ready to break through resistance over the coming days - they just need another day's worth of buying to attract momentum traders back into the market. 

You've now read my opinion, next read Douglas' blog.

Share on StockTwits

---

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.

.

 
f9229fcfd1b1390be00cfccc86c90349c93a4179bf4227457c