Nasdaq rallies as Russell 2000 remains flat
All indices posted gains but it was the Nasdaq and S&P which did most of the leg work. The gain in the Russell 2000 was able to close yesterday's breakdown gap, but not much more.
The gain in the Nasdaq was enough to consider the makings of a new rally off a swing low established last week, but there is a convergence of 20-day nd 50-day MAs to get past first.
The S&P hasn't quite made the gain of the Nasdaq and sill has the May breakdown gap to close. It's also still below trendline support, but crucially, successfully holding converged 20-day and 50-day MA support.
The Russell 2000 started the week in the middle of a trading range and looks like it will remain there for another week at least. Until we see a range break there is little to consider.
All indices are range bound based on early 2021 action. The next move markets make won't be initiated until these ranges are broken. It will likely be another few weeks before we get an idea as to market direction.
You've now read my opinion, next read Douglas' blog.
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