Russell 2000 Sees Some Selling
Declan Fallon | Dec 01, 2020 12:45AM ET
There wasn't too much damage done to the gains made on Friday's junior trader watch. Volume was up significantly across indices to register Monday as a distribution day, but the relative price loss was small. Only action in the Russell 2000 (via IWM) left a mark on the chart.
Even with the selling in the Russell 2000, it remained well above breakout support and held a significant performance advantage relative to the S&P and NASDAQ. Technicals remain favorable with no major bearish divergences to be concerned with.
The S&P had experience a degree of intraday selling which had the potential to undercut breakout support, but by the close of business had managed to scramble back most of the lost ground. By the close of business, selling was not enough to reverse the 'buy' triggers in the MACD and On-Balance-Volume.
The NASDAQ experienced a day similar to the S&P with an intraday sell off, then a recovery.
In contrast, the Semiconductor Index managed to accelerate its bullish trend and break out of its channel in a move which could ultimately benefit the NASDAQ and NASDAQ 100.
Today will be about holding on to recovered gains in the NASDAQ and S&P and for selling in the Russell 2000 to stabilize. It does look like there is more to come from the indices but it might be the New Year before they kick in. Until then, things might come in small steps.
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.