Flat-line Day for Markets

Most of the attention will have been on cryptocurrencies today, but for markets, it was another dull day.  The S&P barely moved the needle as it continued its snail-paced ascent. It's weekly MACD has effectively flat-lined with only its accumulation trend in On-Balance-Volume showing signs of bullish life. 

The Nasdaq closed with a narrow bar candlestick as the rate of its ascent slowed. The index is showing a relative performance advantage over the Russell 2000, which marks a shift in favour of Tech stocks over Large or Small Caps. 


The Russell 2000 lost a little ground as it looks to build a challenge on $233 ($IWM). Technicals are net bullish as the index looks to negotiate its trading range. 


Markets remain in Labor day holiday mood as we enter the traditional seasonal weak period for indices.  I would be happy if the Russell 2000 could remain inside its trading range should the likes of the S&P and Nasdaq weaken, but nothing to worry about just yet. 

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

Image
Markets experienced modest losses, but there is still underlying strength in the market.  The Nasdaq is primed to break to a new swing high, helped by the relatively light volume associated with today's selling as it knocks on the door for a close above 12,200. Technicals remain net bullish, although the index did lose some relative performance against the S&P.  However, Rate Of Change is the highest it has been for months, another indication of bullish strength and the likelihood of a breakout in the coming days.
Read more

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

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

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Archive

Show more