Nasdaq consolidates its latest breakout
The bait-and-switch of the Russell 2000 gain followed by the move in the Nasdaq has left the latter index in the best position to push on. While Friday's gain in the Russell 2000 was welcome, the trading range muddied the issue. The Nasdaq has none of this overhead and the breakout has room for further upside given its working at all-time highs. Technicals are net positive; it even managed to regain its relative performance advantage against the Russell 2000
The S&P is caught in the middle; it lost a little ground today but it did manage to maintain is breakout from what's typically seen as a bearish pattern. The index is underperforming relative to both the Nasdaq and the Russell 2000 despite the all-time highs.
The Russell 2000 has eased back a little after its strong Friday but it hasn't given back its break of the 50-day MA. Technicals are still positive, and while it's range bound - price action suggests there is enough momentum to get it too resistance.
Friday's action looked like the start of something positive for all markets. The action over the past couple of days doesn't change that, and probably has increased that possibility. The index I'm most interested in is the Russell 2000, but holding any index will be enough to keep anyone happy at the moment.
You've now read my opinion, next read Douglas' blog.
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