Declan Fallon | Aug 10, 2020 12:10AM ET
The Russell 2000 (via iShares Russell 2000 ETF (NYSE:IWM)) manged both to finish the week with a breakout on Friday and a breakout on the weekly chart. The only downside was the the lack of volume, although volume registered as accumulation on the daily chart.
The good thing on the weekly timeframe was the relative performance uptick against the S&P.
With the focus on Small Caps the potential bearish top in the NASDAQ is less important, but still needs to be watched should the breakouts in the Russell 2000 suffer a reversal. Friday's small sell off did come on higher volume distribution with channel resistance a factor, but technicals are all net bullish.
The S&P did very little on the day, but did finish the week higher as a series of small daily gains amounted to a respectable finish on a weekly time frame. On the weekly timeframe, it's hard to see how this V-recovery can be maintained, but new all-time highs don't kick in until 3,400 is breached so there is still a little room left before resistance is encountered.
Next week, it will be about having the Russell 2000 maintaining its breakouts and building on them while looking to the previous market leader, the NASDAQ, to not reverse from its earlier channel break. The S&P is the laggard of the bunch and could still go either way but it's not the decider index here.
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.