Showing posts from July, 2024

Russell 2000 ($IWM) surges as S&P and Nasdaq head south.

If ever there was a case for two stories, then today was it. The Russell 2000 ($IWM) gapped higher with a gain over 3% as both the S&P and Nasdaq took a hit, the latter nearly shedding 2%. In the long run, this may be more bullish for the broader market, even if profit taking was the order of the day. The Russell 2000 ($IWM) didn't look back after the reaction to today's economic data. It surged, then surged some more. Technicals are net positive and relative performance has swung back in Small Caps favor. Volume also rose in confirmed accumulation.

Slow day at highs for S&P and Nasdaq

I experienced mixed fortune day trading, unable to catch gain traction on my positional calls, resulting in a small net loss. This expressed itself as narrow range doji for both the Nasdaq and S&P. For the S&P there was a fresh 'buy' signal in the MACD as part of the 5,500 breakout. Volume edged a little higher, counting as registered accumulation. The slow down in the rally opens up for a reversal and test of breakout support.

S&P and Nasdaq continue to diverge from Russell 2000 ($IWM)

The divergence between the S&P, Nasdaq and Russell 2000 continues to expand. The former indices are accelerating in their bullish trend while the Russell 2000 wallows in itself. Having said that, it's not all plain sailing. The S&P hasn't yet reversed the 'sell' trigger in the MACD, but it's getting there.

S&P and Nasdaq continue to make the running

It was a good day for the S&P and Nasdaq as both made attempts to clear their recent trading ranges. However, neither cleared the spike highs from Friday which continue to look like peaks for their respective rallies, although the Nasdaq has come closest to doing so. Buying volume was well down and the MACD trigger 'sell' for each index remains intact.

Late selling sends markets below their Friday open price

After a bright start by bulls, markets quickly took a turn and bears were left in control into the close. Both the S&P and Nasdaq finished with similar candlesticks; a nasty inverse hammer on higher volume distribution. This isn't great news for Monday as indices were looking to come out of a week long pause. It's too early to say what the long term impact of Friday's action will be, but Friday's was the kind of candlestick you typically see at a market top. In addition to the bearish candlestick there was a weak 'sell' trigger in the MACD for the S&P (a strong 'sell' candlestick comes when the trigger occurs below the bullish zero line). The trendline for


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