Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Is The Market Gaining Or Losing Momentum?

By Michele SchneiderStock MarketsJul 27, 2021 12:28AM ET
Is The Market Gaining Or Losing Momentum?
By Michele Schneider   |  Jul 27, 2021 12:28AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Three of the four major indices, including the S&P 500 (SPY), NASDAQ 100 (QQQ), and the Dow Jones (DIA) inched to new highs, while the Russell 2000 (IWM) struggled in its current price range.

It is important for IWM to keep pace with the other indices, for it shows a large selection of small-cap companies which tend to better reflect the overall market picture. This is especially true throughout the pandemic which has seen smaller businesses struggle more while larger time-tested businesses had the capital to weather the pandemic.

Additionally, If IWM continues to chop within its current price area, we could be seeing a divergence between large-cap and small-cap companies.

4 Indices Daily Chart
4 Indices Daily Chart

Above is a chart of the 4 major indices with our proprietary Real Motion indicator.

The recent rally to new highs has pushed SPY and QQQ close to their 200-period moving average (green line) while IWM has yet to clear over its 50-PMA (blue line).

One interesting thing to note is how the DIA cleared to new highs along with QQQ and SPY in price, but has yet to clear over its 50-PMA like IWM. This could be showing that this recent push to new highs is losing momentum.

With that said, If the other major indices continue upwards without IWM, this could show there’s an underlying problem in the market, and we should be cautious. Especially if IWM cannot clear its 50-PMA on Real Motion.

ETF Summary

  • S&P 500 (SPY) New all-time highs.
  • Russell 2000 (IWM) Like this to hold over 216.91.
  • Dow (DIA) 351.09 resistance cleared. Watching to hold it.
  • NASDAQ (QQQ) New highs but lower average volume.
  • KRE (Regional Banks) Holding downward trend. Needs to break the 10-DMA at 62.27 for 2 consecutive days.
  • SMH (Semiconductors) Holding over the 10-DMA at 254.14.
  • IYT (Transportation) Minor support the 10-DMA at 255.47.
  • IBB (Biotechnology) 157.11 main support area.
  • XRT (Retail) 94.84 support the 50-DMA.
  • Junk Bonds (JNK110.10 highs to clear.
  • IYR (Real Estate) Needs to hold over 105.22. 103.17 main support area.
  • XLP (Consumer Staples) 71.69 resistance zone.
  • GLD (Gold Trust) Watching to hold 167.60.
  • SLV (Silver23 support.
  • XME (S&P Metals and Mining) 44.07 next resistance the 50-DMA.
  • USO (US Oil Fund) 48.22 support area.
  • TLT (iShares 20+ Year Treasuries) Price needs to hold the 200-DMA at 147.49.
  • USD (DollarRecent golden cross brings this into a bullish phase.
  • DBA (Agriculture) 19.36 resistance.
Is The Market Gaining Or Losing Momentum?

Related Articles

Is The Market Gaining Or Losing Momentum?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Bubba Born
Bubba Born Jul 27, 2021 6:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's August. The kids return to school (maybe). The unemployment numbers claim (maybe). The IRAs and 401Ks get tapped for funds (maybe). And the virus spreads (without a doubt). As people lose interest the market will drop.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email