Markets consolidate Wednesday's gains
My day job kept me away from doing my market review yesterday, but Thursday's action did me favor and ensured there was no significant give-back to these gains. What was important (for me) was that gains managed to negate the lingering bearish 'black' candlesticks from last week which were casting a bearish pall on recent action in the Nasdaq and S&P - although the Russell 2000 is now starting to struggle a little.
Of the Russell 2000, the index has moved to an underperformance relative to the Nasdaq and S&P and although the index posted strong gains yesterday - which returned it above its 200-day MA - it wasn't enough to negate the bearish inverse hammer. It may be up to other indices to help pull the Russell 2000 higher, but as long as $176 support holds (on any future decline) then bulls can rest easy.
The Nasdaq was able to defend 20-day MA support as it looks to extend its base. Technicals returned net bullish with a 'buy' trigger in On-Balance-Volume. It also nicked a new relative performance gain over the S&P to make it the lead index of the three.
You've now read my opinion, next read Douglas' blog.
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