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Markets Sell Off But Recover Into Close

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Trump kicked off the week with some market turmoil, but market participants still seem to consider his presence good rather than bad for the market.  The only exception was the Russell 2000, which sold off and stayed sold off. This has created a 'bull trap' next to last week's 'bear trap'; a neutral setup. For the Russell 2000, a loss of 1,341 opens up for a retracement down to the 200-day MA at 1,233 and the November swig low of 1,156 (which looks a long, long way away). Technicals saw the trend metric +DI/-DI turn negative as the MACD pulled away from a potential trigger 'buy'; shorts should probably be looking at shorting rallies from here.

Markets Finish Week Maintaining Breakouts

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Friday's action was relatively muted, but really it was all about holding the breakouts generated in the first half of the week. While low unemployment suggests the economy is running close to maximum, it's hard to see when this Trump rally will end. It looks like Trump himself will probably kill it with his immigration policy as skilled workers (H1B, Greencard workers) get caught in the sweep. But until then, with buyers exceeding sellers, bulls don't yet have a reason to worry. The S&P has net positive technicals, with relative performance against Small Caps also ticking higher. Of technicals, On-Balance-Volume is looking the weakest and is likely to be the first to turn negative (and suggest sellers are gaining the upper hand).

Market Breather

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After two days of gain delivering broad breakouts, today saw markets stall a little as those gains were digested. Despite this, the S&P was still able to offer a MACD trigger 'buy'.  Relative performance also got a little uptick against the Russell 2000. With technicals all in the green any additional weakness will likely be viewed as a pullback buying opportuniy

Markets Add to Breakouts

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Another good day for indices as Dow breaks resistance to follow the lead of the S&P and Nasdaq yesterday. The Dow also delivered a MACD trigger 'buy' and +DI/-DI crossover on higher volume accumulation.

Markets Breakout

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After yesterday saw the Russell 2000 finally switch to a net bearish turn in technicals, today saw markets move sharply higher.  This generated breakouts for Tech and Large Cap indices. The S&P enjoyed higher volume accumulation as it cleared the consolidation dating back to the start of December. The gains, while welcome, weren't enough to generate a MACD trigger 'buy'

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.

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