Russell 2000 ($IWM) Tags Support

Bears ultimately won out, but it was not Semiconductors that suffered, but the Russell 2000 ($IWM) instead. I had talked about the Rusell 2000 as the bullish play for today, but in the end, it couldn't deliver. However, despite today's loss it didn't undercut 20-day MA support, although the 'sell' trigger in the MACD expanded as did the index underperformance relative to the Nasdaq. Because support held, there will be a second chance for bulls tomorrow.

Large Caps took the brunt of today's selling, opening up 20-day MAs the next support test. And in the case of the Dow Jones Industrial, this could be tomorrow. Note the 'sell' triggers in the MACD and On-Balance-Volume to go with the underperformance relative to the Nasdaq 100.

For the record, this will take a little longer for the S&P. And for now, technicals are net bullish.

The Nasdaq was quiet, but given weakness elsewhere this was probably bullish. Selling volume did not rank as distribution. Technicals are net bullish and show no signs of weakness.

For tomorrow, repeat what I said yesterday: Russell 2000 ($IWM) for bulls. Semiconductor Index ($SOX/$SMH) for bears.

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

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