S&P runs alongside channel resistance; ready to accelerate

The headline would have been a small loss, but S&P action over the past week and a bit has been for an index running alongside upper channel resistance, looking ready to break through higher. Technicals remain net positive, although the MACD is close to a new 'sell' signal. Even if this was to materialise, I would be surprised if it brought any serious selling and may offer a better buy-the-dip opportunity.

The Russell 2000 ($IWM) didn't experience the modest selling of the S&P and Nasdaq, and managed to post a decent enough white candlestick, but buying volume was relatively light. It's still a slow burn in the bullish relative performance shift versus the S&P, but On-Balance-Volume is moving more strongly in bulls favor.  More significant is weekly resistance at $197, but we need to see what happens on Friday to confirm this. 


The Nasdaq had pulled back from its last tag of channel resistance, so it had perhaps a little more 'value' to offer potential buyers than either the S&P or Russell 2000 ($IWM), but it didn't deliver on this. The MACD trigger remains on a 'sell' with a bearish divergence, and, its underperforming relative to the S&P. Vacation volume clouds the issue a little, but it looks like buyers want to go for Large Caps over Tech stocks.


My next post won't be until next Tuesday at the earliest, so the end of week finish in the Russell 2000 ($IWM) is perhaps the most important thing to track.  I want to see a breakout on a weekly time frame for this index - if not this week, then next.

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Investments are held in a pension fund on a buy-and-hold strategy.

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