Volume Selling Pickup But Breakouts Hold

After a couple of weeks of light trading volume picked up as seller returned to markets. However, sellers were unable to reverse market breakouts. The S&P tagged 2,403 at the low of today, but recovered to leave it halfway between recent highs and 2,400. Technicals are net bullish with the MACD slowly building on its recent 'buy' trigger.

Support for Russell 2000 collapses

There was little of note today with the exception of the Russell 2000. The blog headline is a bit to click-bait, but in relative terms, the Russell 2000 suffered the largest loss. The Russell 2000 took sa 0.8% hit as it bounced away from lead moving averages. The index is still caught in a larger trading range which weakens the significance of today's selling - but in a day of little change, today's Small Caps action gathered attention.

Friday Kept Week's Performance Intact - Semiconductors Strong

Memorial weekend brought with it holiday style trading on Friday. It was positive finish for bulls who were able to maintain and in some cases, build on, gains from earlier in the week Best of the action came in the Semiconductor Index which finished with a new closing high. The rally from April brought with it an acceleration in pace, comparable to the latter part of 2016.  Relative performance against the Nasdaq 100 hasn't breached resistance, but it's very close. Semiconductors spent a long time in the doldrums after the 2000 peak, but they are finding their groove now.

S&P Breakout on Higher Volume Accumulation

While I expected the Dow Jones to be the breakout flyer, instead it was the S&P which led the charge on higher volume accumulation.  Technicals are all in the green with a return of the MACD trigger 'buy'.

Rally Keeps Going But New Highs Await

The S&P is only a short step away from confirming new highs, but today's action will have kept shorts wary with the risk of whipsaw high. A simple push above 2,406 could deliver an acceleration higher. The one disappointment is the light volume.

Market Rallies Slow Down

For the fourth day in a row, markets generated gains to leave markets on the verge of new highs - erasing the losses of last week. However, today's gains were small leaving markets vulnerable to attack from shorts. The Nasdaq and Nasdaq 100 finished with bearish black candlesticks; black candlesticks at swing highs are often associated with market tops. Shorts can look to take advantage with stops above the recent highs with a target of last weeks lows (for starters).

Gains Push Into Breakdown Gap

While today's gains were modest they were significant in generating clean pushes inside last week's breakdown gaps. This brings indices back to challenge 'bull traps' The S&P experienced lighter volume trading as On-Balance-Volume moved to a 'buy' trigger. Today's action opens up for a challenge of 2,405, although shorts may see this as opportunity to go aggressive with a tight stop once markets makes all-time highs.


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