Russell 2000 gains nearly 4%
A big divergence in markets as the Russell 2000 wakes from its slumber to close at a new high while the Nasdaq is busy testing its lows. The Dow Industrials joined the Small Caps party, while the S&P was caught in the middle.
It's an odd juxtaposition given the divergence between the indices, with the Russell 2000 so far extended beyond its 200-day MA. Maybe it's the start of a blowoff top, but there was good volume with today's buying - registering it as confirmed accumulation.
The Nasdaq is back in trading at its 20-day MA after rallying from this moving average yesterday. Given the upper spike of today's intraday range I would expect this to fall further - perhaps as far as its 50-day MA. It would appear money is cycling away from Tech stocks into Small Caps.You've now read my opinion, next read Douglas' blog.
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