Declan Fallon | TalkMarkets | Page 58
Market Commentary
Declan Fallon runs a market commentary blog at Markets.fallondpicks.com, and is a contributor to TalkMarkets and Seeking Alpha. He previously contributed to the Motley Fool. Declan Fallon is also a UI/UX Dashboard Designer for First ...more

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Slow Start To Spring
Further indecision in the markets as a lack of participation kept volume and intraday price changes to a minimum. The biggest hit came to the Russell 2000. It lost just over 0.5% as profit taking struck the index more so than the Nasdaq and S&P.
Nasdaq Volatility At New Lows
While the Nasdaq has reached new highs, the VXN has pushed to lows not seen in over 20 years. For Monday, bulls can look for a breakout in the Nasdaq and continued value buying in the Russell 2000.
Buyers Take Advantage Of Russell 2000 Discount
Bulls are looking to build swing lows with some respectable buying across markets. Best of the market action went to the Russell 2000, gaining 1.5% with a close near today's highs.
Russell 2000 Under Modest Pressure
Glass Half Full or Half Empty? There wasn't a whole lot to today's action. The Russell 2000 had the worst of it, but it still managed to stage a small recovery into the close.
Tentative Gains
The Semiconductor Index gained nearly 1% as it pushed a new multi-year high, but most of the gains were achieved by the open and it didn't add too much after that. However, it did keep shorts at bay for another day.
Small Gains On Accumulation
Markets finished the week with an accumulation day on Friday, with bulls coming in at 20-day MAs for the S&P and Nasdaq. The Russell 2000 also dug in, although buyers worked with no clear support level.
Buyers Come Back To 20-Day MAs
With indices experiencing small changes, 20-day MAs are starting to look like a defensive point for bulls to work the next rally.
Small Caps Accelerate Losses
A mixed day with most indices experiencing minimal change. The only index to come out feeling blue was the Russell 2000.
Small Caps Slow Morph A Bull Trap
It was another quiet day for most indices, but the Russell 2000 dropped into a potential 'bull trap' situation.
Status Quo
There wasn't a whole lot of change in markets with the Russell 2000 edging back to support. Small Caps remains the most vulnerable to an increase in profit taking with the 50-day MA playing as the last line of support.
Weakness Confined To Breadth Metrics
Friday's action stemmed whatever profit taking was in play from Thursday. It kept bulls well placed to attack again Monday, barring some early morning Trump Tweet Disaster.
You Can't Keep A Good Rally Down
Bears get a sniff of something, then Bulls come along and blow the nascent opportunity out of the water. It was a big day for indices - the Russell 2000 in particular, as buyers jumped in early and played hard for the day.
Profit Taking Hits Russell 2000
After successfully defending former resistance turned breakout support, the Russell 2000 experienced a relatively heavy reversal. It hasn't yet given up breakout support, but the index now finds itself back at the 20-day MA.
Buyers Grab Small Caps
Traders had the weekend to study the opportunities and decided there was value to be found in Small Cap stocks. The Russell 2000 added nearly 1% as the positive test of the breakout, 20-day and 50-day MAs expanded.
Buyers Keep Shorts At Bay
Just when it looks like shorts may have something to attack, buyers step in to make up the lost ground. The rally is out on a limb, but not enough to place it at the outer extremes of historic price action.
Good Recovery - Thursday, February 23
In early morning action it was a clear swing to sellers after yesterday's non-event. However, buyers came back and were able to make a good chunk of these losses into today's close.
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