Indices continued to drift with the Russell 2000 (IWM) experiencing the largest loss. Technicals for the Russell 2000 are net bearish with the index on course to test $287. Both 20-day and 50-day MAs are now cleanly undercut. Trading volume increased to register a second day of distribution in a row. Momentum has been in a bull cycle since April. It waivered in July before it recovered, but it's already in the same position now as it was then, with no price support nearby; further losses are likely.
The equal-weighted S&P (RSP) also took a decent hit, but unlike the Russell 2000 it's still in a bull trend with strong bullish momentum. I would like to see a test of the 50-day MA, which would maintain the larger bullish trend.
The S&P only posted a small loss that didn't violate breakout support. Technicals are mixed with only 'weak' sell signals running against stronger bullish momentum.
The Nasdaq (QQQ) has been range bound since May and Friday's action did little to change that.
Bitcoin (BTC.X) closed higher as it shapes a nice consolidation after the surge past $75K. Watch for a measured move higher with a projected target of $92K.
A watch-and-wait for indices as sellers push looking for support. Bitcoin remains best placed to post further gains and offers a buying opportunity.
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