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

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Friday's gap downs bring indices close to support. Semiconductor Index at 200-day MA.

Image
Friday's big gaps lower have the potential to become breakdown gaps, but for now, the near term oversell has for a possible move into the gap price vacuum. The index most likely to achieve this in the coming days is the Russell 2000 ($IWM). The Russell 2000 ($IWM) finished with a neutral doji, just above its 50-day MA and in a thick band of support between $207.50 and $210 marked by the summer swing highs. Technicals have followed price action with new 'sell' triggers in On-Balance-Volume and ADX, but intermediate term stochastics haven't reached the mid-line that is typical support in bull markets. Aggressive bulls can look for a move to test the underside of the 20-day MA. The S&P was unable to hold its 50-day MA on Friday's open, and instead found itself toying with the May swing high. More significant support is likely to be found around 5,265, so if there is an undercut of Friday's low then this will be the next port of call. More concer...
Read more

Big bearish engulfing patterns as positive start negated

Image
It was a setting up to be a low key day, but come the afternoon, sellers pounced and drove markets down hard after doubts raised on future rate cuts. Fed news wasn't the key takeaway, but the loss of support was. The S&P was hardest hit, not because of the percentage loss, but because of the volatility relative to recent trading action. Today marked a clear breakdown of trendline support. It should be noted, the presence of the 50-day MA offers a point of defence but today's loss does not mean we will see a crash; a time-led consolidation seems more likely. Technically, the MACD accelerated its losses and there was a fresh 'sell' in On-Balance-Volume.
Read more

Archive

Show more