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Russell 2000 Turns Net Bearish Technically

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It was another day of modest change with little real turn in bullish/bearish outlook.  The Russell 2000 was the only one index to mark a technical change with a net bearish switch in technicals (MACD, Slow Stochastics, On-Balance-Volume).

No Major Change

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Trump's inauguration looks to have kept traders distracted as markets experienced a relatively quiet Friday, despite some higher volume trading. The S&P experienced higher volume accumulation but was unable to get past 2,275. Monday is another day, but keep an eye on the MACD; a gain with a new 'buy' trigger well above the bullish zero line will attract technical traders on the long side. This in turn will encourage short covering.

Small Cap Losses Accelerate

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Small Caps again took the brunt of the selling as Shorts took advantage of yesterday's small rally back to former support (turned resistance) to enter positions. With the 'bull trap' in full effect, the next target down for the index is 1,308. Of supporting technicals, only Stochastics [39,1] is left to break its bullish alignment,

Minor Day for Markets

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No need to say much for today as very little happened in the market. The Russell 2000 attempted to undo yesterday's breakdown, but hadn't recovered enough by end of day to negate it.

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