Tuesday, March 23, 2021

Markets Diverge; Nasdaq Gains - Russell 2000 Loses.

It was a bit of a mixed bag for markets as the S&P and Nasdaq gained, but the Russell 2000 lost ground. Gains in the Nasdaq didn't quite make it above its 50-day MA but it's poised to make a relative switch advantage over the Russell 2000.

The Russell 2000 lost ground as it tried to keep pace with the other indices. There were 'sell' signals for the MACD and ADX along with a relative performance loss against the Nasdaq. It's still above its 20-day MA but the earlier push above 230 is looking more like a 'bull trap'. 


Gains in the S&P again tagged resistance after a successful defense of its 50-day MA. There is still a 'sell' signal in On-Balance-Volume to overcome. However, there is a return to a relative performance advantage to the Russell 2000 - something it has been threatening for a number of weeks. 


We head in tomorrow with a possible divergence in play; Large Caps (and Tech to a lesser degree) looking to resume a leadership role over Small Cap stocks.

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

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