And So It Begins, Markets Initiate A Rally
Declan Fallon | Feb 01, 2022 01:21AM ET
Buyers stewed over the weekend and started Monday with a period of buying across lead inside. Buying volume was down on yesterday's (and recent buying) and given the NASDAQ gained over 3%, it was a little disappointing not to see volume match the large percentage gain, although things were a little better for the S&P 500.
For the NASDAQ, there was no fresh 'buy' signals, although On-Balance-Volume was on the verge of a new trigger.
The S&P edged above the December swing low and a return above its 200-day MA, although it was interesting to see the relative performance dip a little against the Russell 2000.
The iShares Russell 2000 ETF (NYSE:IWM) also gained on low volume as buyers took advantage of Friday's trading. While the index was underperforming against its peers (S&P and NASDAQ), it was gaining ground.
While yesterday was a solid start to a swing low, we can expect a more neutral candlestick over the coming days. Once this occurs, we will want to see indices retain their gains and not drift back into a retest of Friday's lows.
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