x
Breaking News
0

Small Caps Get Their Bounce Off Rising Support

By Declan FallonStock MarketsJun 29, 2017 12:10AM ET
www.investing.com/analysis/small-caps-get-their-bounce-200198145
Small Caps Get Their Bounce Off Rising Support
By Declan Fallon   |  Jun 29, 2017 12:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The last few months have seen Small Caps trade inside a lengthy sideways pattern but their moment in the shade may be coming to an end. Yesterday's rally in the Russell 2000 was a picture perfect bounce off rising support.

Not only that, the index mounted a strong challenge on the early June 'bull trap'. This improved strength has been represented by the continued uptick in relative performance against the NASDAQ. The next watch area will be a new MACD trigger 'buy' to coincide with a negation of the 'bull trap'. Once it gets out of the range it will open up for a new round of speculative investing.

RUT Daily Chart
RUT Daily Chart


The S&P made back all of Tuesday's losses but it hasn't gone as far as to challenge the 'bull trap'. Volume was lighter, but the 'buy' trigger in On-Balance-Volume remains intact. The MACD trigger 'sell' remains with the ADX experiencing a whipsaw. Watch for a move to challenge the 'bull trap' above which is room to move to channel resistance.

SPX Daily Chart
SPX Daily Chart


The NASDAQ still has the large bearish engulfing pattern to undo, in addition to a recent 'bull trap'. However, yesterday's action was a solid recovery off channel support and the 50-day MA. Technicals are a little mixed with a 'sell' trigger in the MACD and ADX with weakening stochastics offset by a recent 'buy' trigger in On-Balance-Volume.

COMPQ Daily Chart
COMPQ Daily Chart


Today will be about holding existing positions and seeing what evolves. Longs will have the 2-day low (as of from yesterday and Tuesday) to use for stop protection. Shorts will want to see how rallies evolve from here - the Semiconductor Index in particular - before looking to enter new positions.

Small Caps Get Their Bounce Off Rising Support
 

Related Articles

Small Caps Get Their Bounce Off Rising Support

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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 Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
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.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
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
or
Sign up with Email