End of week gloss marks strong accumulation finish for indices
It was an earlier then expected - but welcome - rally which closed the week out. Indices exhibiting bullish technicals are looking in good shape, even if it's a bit of a slow burn.
The Nasdaq has yet to challenge the December highs, nor its 200-day MA, but the index is accelerating its relative outperformance to the S&P, with on-balance-volume trending higher. Buying volume registered as accumulation and while it hasn't knocked out last week's swing high, it should do so this week and build on a challenge of 11,500.
The S&P gained its bounce off the 20-day MA, only to finish at its 200-day MA. Despite this, the index was able to register an accumulation day as it held mid-line stochastic support. It still has work to do to make back lost relative performance against the Russell 2000, but the 'sell' trigger in On-Balance-Volume could be reversed early next week.
The Russell 2000 is again becoming an index of interest. Friday's gain came on strong accumulation which included an uptick in On-Balance-Volume but a disapinting downtick in relative performance. However, unlike the S&P and Nasdaq it's above all key moving averages with a pending 'golden cross' between 50-day MA and 200-day MA.
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Investments are held in a pension fund on a buy-and-hold strategy.