Russell 2000 ($IWM) finds support at rising trendline

There wasn't much volume to Friday's trading, but there was enough to see buyers come in a trendline support in the Russell 2000 ($IWM). There was no technical change to the index with only a whipsaw signal in relative performance against the Nasdaq, although the MACD remains on a prior 'sell' signal.

The Nasdaq recovered some of Friday's losses but remains a long way from challenging the 'bull trap' and is below breakout support. The index continues to underpeform the S&P. On-Balance-Volume has flatlined against the signal line, although has moved back to a 'buy' signal.

The S&P similary remains below trendline support when Friday's gain failed to recover this support. The index is outperforming relative to the S&P but both On-Balance-Volume and MACD are holding to earlier 'sell' signals.

Tomorrow's lead will be the Russell 2000 ($IWM) continuing its move off support. But, if this fails after the first half-hour of trading, then look to the Nasdaq ($COMPQ) and S&P ($SPX) for a short opportunity, particularly if these indices make it to trendline resistance (former support).

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

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