Russell 2000 takes biggest loss but trading range unchallenged

Only one index suffered a loss of potential consequence, but given the Russell 2000 is range bound the near 1% loss didn't do a whole lot of damage.  The 50-day MA remains as uncharacteristic resistance in a range bound scenario, but it makes tracking supply relatively easy as long as it stays as resistance. I have drawn in a bearish wedge, with a measured move target down to monitor. 


The Nasdaq closed with a narrow doji on higher volume acccumulation. The 20-day MA continues as support with the MACD and ADX still on 'sell' triggers.


The S&P managed a new high in both price and On-Balance-Volume, although there is little information to trade on. The index is in the middle of the rising channel with technicals net bullish it's a safe 'hold'. 


The Semiconductor Index is at an interesting juncture as it makes a positive test of breakout support, although supporting technicals are mostly bearish - only stochastics [39,1] are bullish.  The index is also underpeforming the Nasdaq 100, which may be a warning for worse to come - but price will always be the lead.


Holiday trading continues with modest gains keeping bulls happy, but those looking for a pullback to buy are left wanting.  The Russell 2000 is caught in limbo, which helps neither bulls nor bears. 

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

---

Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.

Follow Me on Twitter


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

.

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more