Sunday, August 15, 2021

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