Russell 2000 Posts Small Gains; S&P 500, Nasdaq Breakouts Remain Intact
Declan Fallon | Feb 27, 2024 02:14AM ET
While the Russell 2000 (IWM) is not the leading index in the market, it performed the best yesterday and is building a nice base after its initial failure to break to new highs in early February.
The Nasdaq and S&P 500 didn't do a whole lot yesterday, but breakouts from February are intact for both of these indices.
Technicals for the Russell 2000 ($IWM) returned net bullish with on-balance-volume on a new 'buy' signal. That said, the index is underperforming relative to both the Nasdaq and S&P 500.
While yesterday finished higher, the trading range neutralizes the significance of the gain, and only when the range high or low is breached will we have a return to the November-January rally or a shift towards a more bearish stance.
With the Russell 2000 doing most of the leg work yesterday there wasn't a whole lot going on with either the Nasdaq or S&P 500.
The Nasdaq posted a small loss, extending from Friday's loss. The breakout from February remains intact but there is a substantial breakout gap to close.
The S&P 500 closed Friday with a bearish black candlestick that followed up with losses on Monday. Technicals are a little muddled with a flatlined MACD but a generally bullish accumulation.
For the coming week, it will be down to the S&P 500 and the Nasdaq to hang on to their breakouts while the Russell 2000 continues to build the right-hand side of its base.
Nasdaq breadth remains negative and it will take time before this recovers, but price leads in all respects.
Get The News You Want
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.