Russell 2000 takes on leadership roll
The Russell 2000 hasn't yet cleared its trading range but it has regained its relative leadership role versus the Nasdaq and S&P. Today's trading also came with higher volume accumulation. While seasonal factors would offer a more pessimistic outlook, if the Russell 2000 ($IWM) was able to push beyond $234 it would deliver a whole new (bullish) market outlook. Supporting technicals are net bullish.
The Nasdaq is the next mst bullish index as it managed a small gain, but only enough to finish with a (neutral) 'black' doji. In the context of the bounce over the last couple of weeks it feels bearish, but this is an idex which has clearly broken resistance. As with the S&P it's at an all-time high, so has no overhead resistance. Techniacls are net bullish, although it has begun a period of underperformance relative to the Russell 2000.All eyes should be on the Russell 2000 as it looks to take on the leadership roll from the Nasdaq and S&P.
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You've now read my opinion, next read Douglas' blog.
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