Thursday, August 12, 2021

Dow builds on breakout as Russell 2000 remains in limbo

More of the same with only the Dow Jones Industrial Average adding to its breakout as the Russell 2000 again continues with its "non-event" slush trading. 

The Dow Industrials is building on its breakout, following the lead of the S&P which has continued to log small gains throughout the summer.  The Dow Jones Industrials is net bullish in technicals backed by a solid bullish trend in On-Balance-Volume, but overall - it's a bit of a laggard.

The Russell 2000 is a non-event. The 50-day MA is flat-lined resistance, but the trading range is the larger issue.

The Nasdaq is holding support of its 20-day MA with a nice bullish hammer.

The S&P continues with modest gains.  I have redrawn a rising channel but it's not really a factor at the moment. 

Today's action may offer longs a chance to trade the Dow Jones Indice breakout, the S&P and Nasdaq are a hold, the Russell 2000 is a non-trade. 

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

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Investments are held in a pension fund on a buy-and-hold strategy.