Russell 2000 Continues To Carry out Effectively; Dow Shopping for Alternative Forward?

0
30


Yesterday’s morning gap down on Chinese trade war fears was painted over by some decent buying action over the course of the day. Best of the action was reserved for the , which is now starting to outperform the and ; this is good news for bulls for all indices. Technicals are in good shape but I would like to see the MACD expand upwards.

RUT Daily

RUT Daily

While the S&P gapped down from its trend last week, it did do well yesterday, closing near its high of the day. Like the Russell 2000, its MACD has flatlined, but unlike the Russell 2000, its MACD has ticked lower to a ‘sell’ trigger.

SPX Daily

SPX Daily

The NASDAQ, like the S&P, had last week breached support—in this case from a bearish wedge—but yesterday did not see an acceleration of the losses, which would have been typical in such a scenario. The likelihood of a new sideways consolidation coming out of this looks high, with either the 50-day or 200-day MA perhaps defining the lower part of this range. Healthy action for bulls no matter how you slice it.

COMPQ Daily

COMPQ Daily

The actually managed a bullish defense of its 50-day MA; enough to suggest we may have seen a new ‘buying’ opportunity.

INDU Daily

INDU Daily

The only possible negative was the breakdown of the rising channel in the . This index has performed strongly throughout 2019, so this may just be a slowing of the upward trend.

SOX Daily

SOX Daily

For today, keep interest focused on the Russell 2000; it has the best set-up of all the indices. Other indices are looking more like evolving into sideways patterns, but if the Russell 2000 is able to kick on, it will bring the other indices with it.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link