There wasn’t a whole lot to today’s action. Small gains in the Nasdaq and S&P were unable to return a challenge on the prior swing high, while yesterday’s new high in the Russell 2000 saw a minor loss.
Buying volume for the Nasdaq was lighter than normal and there was already a ‘sell’ trigger in the MACD. In addition, relative performance remained poor.
The S&P is net bullish with today’s buying representing a nice consolidation handle.
Small Caps experienced light losses which kept things ticking over. There wasn’t a whole lot more to say as technicals remained net bullish. The index is very extended and ripe for a correction – but extended markets can trip up the unwary.
A bit of a mixed bag as buyers in Large Caps and Tech ran counterplays to the Russell 2000. Markets are vulnerable because of their extended nature, but buyers still look to have an edge for Large Caps and Tech.
You’ve now read my opinion, next read Douglas’ blog.
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Investments are held in a pension fund on a buy-and-hold strategy.
SOURCE: Fallon Financial Commentary – Read entire story here.