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Russell 2000 Set to Continue Higher as Nasdaq, S&P 500 Vulnerable to Profit Taking

ByDeclan Fallon
Published 02/09/2024, 02:26 AM
Updated 07/09/2023, 06:31 AM

It was a real non-event for the S&P 500 and Nasdaq, so it was left to the Russell 2000 to take up the slack.

The Russell 2000 (IWM) posted a solid gain to keep the momentum going from its successful 50-day MA test.

If there was a concern it was that buying volume was a little disappointing, although yesterday's trading registered as accumulation, continuing a trend of weakening volume since the initial sell-off spike.

Technicals for the Russell 2000 are also net bearish, despite yesterday's gain.

IWM-Daily Chart

The Nasdaq and S&P 500 both finished flight with narrow doji. Technicals are net bullish and the only difference is that the Nasdaq is slightly outperforming the S&P 500.

Market breadth is negative, so a some point this weakness will be represented in the markets, but what should happen and what happens are often two different things.

COMPQ-Daily Chart

Today, I would be looking for the Russell 2000 to continue its advance which would also mark a significant improvement for the weekly candlestick.

If there is any profit taking in the Nasdaq and S&P 500 I would be looking for the Russell 2000 to benefit, or at least, not suffer as much.

SPX-Daily Chart

Latest comments

as long as the chip makers outperform and ARM adding more fuel its not over. probably more after NVDA reports later this month.
In Russel, I see a shape that can be seen as a mast band or a symmetrical triangle, with the first breaking further up and the second breaking downward.
hello sir please help me
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