Small Caps Make The Running

A real mixed bag for markets. All indices were hit hard by Friday's Trump Tariff Special, but Small Caps ($IWM) are the only one trying to make a come back. Volume rose in confirmed accumulation, but it was below the volume of Friday. Technicals are mixed, but there was a surge in the relative performance of the index over its peers.

For other indices, today's action wasn't too great. Friday's big sell has dominated action since, and today's 'spinning top' in the S&P on a successful test of the 50-day MA is not great. Add to that, volume rose in distribution. I would be looking for sellers to add to the pressure tomorrow.

It was a similiar story for the Nasdaq. The only difference is that it hasn't yet tested its 50-day MA, so we may yet to see an undercut of Friday's low on expanding technical weakness.

If there is an asset that most represents the bearish cause it's Bitcoin. Having flashed a 'bull trap' it now finds itself toying with trading range support (with its 200-day MA nearby). If this gives up $107.5K, then look for the Nasdaq and S&P to follow suit with a comparable loss of its support.

The Dow Industrial Average is doing a little better than the Nasdaq and S&P, with a successful test of its 50-day MA on confirmed accumulation. If there are buyers out there looking for a trade, this is the index to pursue.

Sentiment is moving bearish, and while indices are extended, they are not hyper extended. Taking profits is a smart play, but no reason to do a broad side sell off.

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

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