A Pause In Proceedings, But Keep An Eye On The Russell 2000
Declan Fallon | Apr 08, 2021 12:15AM ET
Some days markets move, some days they don't—Wednesday was one of those latter days.
There wasn't much going with yesterday's index action, with cryptocurrencies hogging the headlines. The NASDAQ remained on breakout support.
The S&P remains at the upper part of Monday's breakout range. Technicals are net positive, and the index is well positioned to gain.
The Russell 2000 (via IWM) lost ground, sending the index back to its 50-day MA. The index still has to challenge the 'bull trap' and relative performance against the NASDAQ ticked lower. While it's the weakest of the lead indices, selling volume was relatively light.
The index to watch is the Russell 2000. With the S&P at highs, things can stay positive even if the index moves sideways, but should the Russell 2000 continue to trickle losses, it will eventually drag the other indices down with it.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.