On the surface, it looked to be a generally positive day with the Nasdaq gaining and the S&P recovering earlier losses - but the Russell 2000 (IWM) pushed a clear cut of $228 and is now back inside the prior trading range. The Russell 2000 did find support at its 50-day MA, but beyond a test of the March swing lows there isn't a whole lot of support available. Adding to that, relative performance against the S&P took another step lower - only Stochastics is net positive.
The Nasdaq closed near the day's highs on higher volume accumulation. Technicals are net positive with indicators like the MACD and relative performance vs the S&P managing a new swing high. This could go longer...
The S&P closed a little lower after an extended period of gains. Technicals are net positive, even though today's volume ranked as distribution. How will action in the Russell 2000 playout for the S&P?
Action in the indices is been covered by growing weakness in the Russell 2000. Bull markets need participation by Small Caps, but it's Small Caps that are losing the most ground. Let's see what the rest of the week brings.
Comments
Log in or sign up to join the conversation.