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Large Caps Continue Gains; Russell 2000 Primed For Breakout

By Declan FallonStock MarketsApr 19, 2021 12:55AM ET
www.investing.com/analysis/large-caps-continue-gains-russell-2000-primed-for-breakout-200573785
Large Caps Continue Gains; Russell 2000 Primed For Breakout
By Declan Fallon   |  Apr 19, 2021 12:55AM ET
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Friday saw the S&P 500 and Dow Jones Industrials continue to post gains as other indices drifted along in narrow trading. 

The S&P is on a ribbon rally of small, steady gains that brings its relationship to the 200-day MA to 16.1%, which is between the 99% to 95% of historic price extremes; this is a rally which is running hot.  There is no slowdown in technical strength, or bearish divergences to worry about, and relative performance remains good after an extended period of underperformance—so no reason to not see this rally continue despite its extended nature.

SPX Daily Chart
SPX Daily Chart

The NASDAQ and Russell 2000 had similar days, with little net change and both rallies remaining below prior swing highs. The NASDAQ still enjoys good technical strength, and relative to the Russell 2000, so Friday's quiet action was of little concern to the big picture.

COMPQ Daily Chart
COMPQ Daily Chart

The Russell 2000 (via IWM) remains contained by its handle, but primed for a breakout. Keep a watchful eye.

IWM Daily Chart
IWM Daily Chart

For the coming week we will want to see the Russell 2000 push on and join in the gains of Large Caps (and NASDAQ, if it follows suit). 

Large Caps Continue Gains; Russell 2000 Primed For Breakout
 

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Large Caps Continue Gains; Russell 2000 Primed For Breakout

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Comments (2)
Jouni Matero
Jouni Matero Apr 19, 2021 2:04AM ET
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Where does this infinite optimism for ever lasting rise come from?? Like some artificial stimulus money would keep the illusion of strong economy live... Bubble says pop.
Pretty Angeles
Pretty Angeles Apr 19, 2021 2:04AM ET
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hello
Nick Fit
Nick Fit Apr 19, 2021 1:12AM ET
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Maybe a breakdown haha
Pretty Angeles
Pretty Angeles Apr 19, 2021 1:12AM ET
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hello
 
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