💎 5 of the Mag 7 report earnings next week. Which one should you buy?Ask WarrenAI

Bearish Engulfing Pattern In Russell 2000: Has The Pullback Started?

Published 10/31/2013, 02:06 AM

Small Caps took the biggest hit from sellers yesterday with a substantial bearish engulfing pattern (at least, relative to the last couple of weeks). The rally didn't make it to channel resistance, so it will be interesting to see how it does when it makes it back to its 20-day MA.
Russell 2000 Daily
The S&P wasn't so extreme in its selling, holding above the rising channel, but we're likely to see this level tested today. Further losses will leave a shortable 'bull trap'.
SPX Daily
The Nasdaq had a smaller bearish engulfing pattern than the Russell 2000, but technicals remain in good shape. Relative strength momentum continued to move away from the Nasdaq to the S&P. Like the S&P, the Nasdaq has former channel resistance to lean on, in addition to 20-day and 50-day MAs. Bulls will have plenty of opportunity to buy on each of these tests.
NASDAQ Daily
The Nasdaq 100 has seen the largest relative gain (against the Russell 2000) and has the most room to run before reaching the first level of support - likely to be the 20-day MA.
NASDAQ 100 Daily
Yesterday had the look of the start of a pullback. Bulls will be looking to pick their entries: former channel resistance-turned support, 20-day MA, then 50-day MA.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Which stock should you buy in your very next trade?

AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?

Unlock ProPicks AI
Read Next

Latest comments

Risk Disclosure: 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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.