Indices Post Gains But Russell 2000 Still To Breakout
Declan Fallon | Jul 02, 2021 02:17AM ET
There wasn't a whole lot to yesterday's gains but indices did manage to recover intraday losses.
The NASDAQ is comfortably above its breakout support and today's intraday swing barely lost ground. Technicals are net bullish with no bearish divergence to worry about. The index is 11.7% above its 200-day MA, which is outside of the 85% of historic extremes.
Likewise, the S&P accelerated its gain after a flat-line period. Buying volume was modest but technicals were bullish.
The Russell 2000 added near 1%, but the gain wasn't enough to generate a breakout. However, it is holding a minor support level of $228, making this a good place for a trade. Technicals are net bullish.
We are probably a day or two away from a Small Caps breakout, which when it happens, will align all markets with breakouts. Because the Russell 2000 is nested below $234 - the area around which the March swing high was trading - it means today's action offers a relatively low key opportunity to get in before momentum traders take over.
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