It was a modest day for the S&P, Dow and Nasdaq indices, but it was a better day for the Russell 2000. The recovery in the Russell 2000 after the channel breakdown took a big step forward as it worked itself off its 50-day MA and finished above its 20-day MA. The breakdown remains, but this will likely shape itself into a broader (more shallow, and therefore more sustainable) rally.
The S&P remained close enough to 1,987 support, but below psychological 2,000. Buying volume eased for a second day after Tuesday's heavier volume distribution. Indecisive bulls will find themselves with another opportunity to participate.
The semiconductor index did attempt a 20-day MA tag, but it was quickly bid higher.
Again, this strength is good news for the Semiconductor index, and the Nasdaq (100). The very tight trading range offers a good risk:reward for longs.
For Friday, longs remain favored. Large Caps and Tech indices offer the best risk:reward value with upper channel lines the targets.
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