A day the Russell 2000 ($IWM) shone

It was a real non-event for the S&P and Nasdaq, so it was left to the Russell 2000 to take up the slack. The Russell 2000 ($IWM) posted a solid gain to keep the momentum going from its successful 50-day MA test. If there was a concern it was that buying volume was a little disappointing, although today's trading registered as accumulation, continuing a trend of weakening volume since the initial sell off spike. Technicals for the Russell 2000 are also net bearish, despite today's gain.

The Nasdaq and S&P both finished flight with narrow doji. Technicals are net bullish and the only difference is that the Nasdaq is slightly outperforming the S&P. Market breadth is negative, so a some point this weakness will be represented in the markets, but what should happen and what actually happens are often two different things.

Tomorrow, I would be looking for the Russell 2000 to continue its advance which would also mark a significant improvement for the weekly candlestick. If there is any profit taking in the Nasdaq and S&P I would be looking for the Russell 2000 to benefit, or at least, not suffer as much.

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

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