Russell 2000 Gains, While Nasdaq Posts Another Blip
Declan Fallon | Aug 26, 2014 05:51PM ET
There wasn't a whole lot of action in the indices today. The only index to come out with anything was the Russell 2000. I thought we would have seen today's gain yesterday, but it was welcome all the same. Today's gain for the Russell 2000 also resulted in a return of the net bullish technical picture.
Of the quiet action, the Semiconductor Index didn't follow through on the bearish engulfing pattern, although there wasn't a negation of it either. I suspect this is still a shorting opportunity for the near term and today's tight intraday range allows for a narrowing of the stop placement (to a few points above today's high).
The S&P 500 managed the closing finish at psychological 2,000, although I consider 1,990 are more important level to defend. The 'gravestone' doji is a small concern, but only as a marker for a new consolidation handle.
Meanwhile, the NASDAQ posted another 'blip' of a day on higher volume accumulation. The tight action makes for a good swing trade on break of 2-day high/low (stop on flip side) as the upside is unlimited, and the downside is 4,485 with potential follow through to 20-day MA.
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