Russell 2000 continues its advance

The Russell 2000 advanced on the second day after its breakout.  Volume climbed to register as distribution with technicals net positive.  All indices gained, but relative performance of Small Caps remained ahead of Large Cap indices. The current rally gives the index some leeway when it comes to consolidating the breakout (and a probable breakout support test). 


The Nasdaq added another 1% - also on higher volume accumulation - as the rally maintained its run off the October swing low. The gain was enough to reverse the relative performance advantage over the Russell 2000, although both indices are performing strongly. 


The S&P didn't quite add 1%, but it already has a well established breakout.  The index is underperfroming relative to both the Nasdaq and Russell 2000 but this is not too damaging for the index as this time - particularly as bullish seasonal factors will becoming into play. 


While we are seeing a shift in relative performance, we have a scenario where all indices are gaining and it's just to what extent each are moving relative to one another.  While it's unlikely these advances will be maintained without some back test of breakout support it is looking more likely we will have a strong finish into the end of year. 

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

Being "Right" but still losing...

Image
I'm trying the Topstep Trader Combine as a sampler to day trading and it's an interesting setup with minimal outlay costs to get started. I'm not a huge fan of their platform UI but everything else has been pretty good so far. Today was one of those days where I waiting (and waiting) for the profit taking to kick in, but by the time sellers made their appearance I had reached my loss limit for the day and so that, was that. You can see all of my whipsaw trades here. For the record, I only work off price action, looking at support/resistance and tells like rapid stop take outs, usually a good sign for a reversal.
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