Russell 2000 Breaks Lower
Declan Fallon | Jan 18, 2017 12:02AM ET
In the end, it was Theresa May rather than Donald Trump who yesterday set the Russell 2000 cutting through support to confirm the earlier 'bull trap'. This change coincided with a 'sell' trigger in +DI/-DI. Only stochastics are hanging on to its 'buy' signal.
The S&P experienced heavier volume distribution yesterday, but there wasn't a big percentage loss, nor was there a break from the consolidation range.
It was a similar story for the NASDAQ. It took a greater relative loss than the S&P, but it didn't challenge support from the breakout. However, look for such a test today. All supporting technicals remain in the green.
With the bank holiday weekend over, traders can again look to push the Trump/May agenda. Shorts can remain tied to the Russell 2000 - shorting rallies as they emerge. Longs should look to Large Cap indices and the short covering which is likely to follow once trading range resistance is breached.
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