Stock and bond prices move everyday. So what is the big deal? Up, down, sideways, movement is just part of the market fabric. And most days the movement attributed to key events detailed by pundits and the media are not exciting. But hey, it is there job to talk all day about something that for the most part is boring and unimpressive action. But once in a while something unusual happens. You can sense it, just as George did while getting massaged by a man.
That happened Wednesday in the small cap sector of the stock market. The Russell 2000 moved. It did something significant. It pressed higher to a a higher high, above the interim top from just over a week ago. This establishes a nascent uptrend and that is why it is significant. And there are signs that it will continue.
The first is the price action itself. Moving higher, and doing it in the pre-market action as well, bodes for more upside. Off of a higher low it establishes a target on this move to 158 on the IWM, the ETF that tracks the Russell 2000. The Bollinger Bands® are also shifting to the upside. Momentum is making higher highs as well with the RSI a whisper from the bullish zone while the MACD has crossed to positive. All of these signs reinforce ‘the move’ in the small caps.
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