Small Gains At 50-Day MA For Russell 2000
Image Source: Unsplash
A bit of a non-event for the S&P and Nasdaq as both indices closed with tight doji near their highs. There isn't a whole lot more to add for these indices.
The Russell 2000 (IWM) managed to deliver a little more upside with a successful test of its 50-day MA. However, the volume was well down on what I would like to see for a successful support test.
I follow J.C. Parets and he has noted the breadth weakness in this rally. This is apparent in the Percentage of (Nasdaq) Stocks above the 50-day MA, 200-day MA, Bullish Percents Index and Summation Index, all of which are showing a bearish divergence.
Given the breadth picture (in the Nasdaq), the expectation is that tight trading will eventually give way to selling, or catch bulls off guard with a 'bull trap'. I would expect this selling to spill across indices, but let's see what the market brings.
More By This Author:
The Week Closed With Strong Gains On Higher Volume AccumulationBullish Hammer For Russell 2000 At 50-Day MA
Day Trade In Nasdaq 100 Delivered; What Next?
Disclaimer: Investors should not act on any information in this article without obtaining specific advice from their financial advisors and should not rely on information herein as the primary ...
more
Comments
