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Trading Week Starts With Weakness For The Russell 2000

By Declan FallonStock MarketsNov 30, 2021 12:25AM ET
www.investing.com/analysis/trading-week-starts-with-weakness-for-the-russell-2000-200609892
Trading Week Starts With Weakness For The Russell 2000
By Declan Fallon   |  Nov 30, 2021 12:25AM ET
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Not the best of starts for the Russell 2000 (via IWM) on Monday as the opening gap higher drifted back into a lower close. The finish was still enough to register support of the 200-day MA, but as long as sellers keep feeding piranha style on the carcass it will struggle to recover. The index did enough to hold on to the 200-day MA but technicals remain net negative though stochastics are not yet oversold.

IWM Daily Chart
IWM Daily Chart

The NASDAQ managed a bounce back to its 200-day MA—which while better than action in the Russell 2000—there wasn't enough demand to see a close above this moving average. Technicals remain mixed but On-Balance-Volume is still trending higher and yesterday's buying rated as accumulation. It needs a little more to mark it as a possible swing low, although a trading range from here is perhaps the most likely outcome.

COMPQ Daily Chart
COMPQ Daily Chart

The S&P was able to reverse Friday's selling but it was only enough to take the market back to its starting point, pre-Thanksgiving. The index is trading just below its 20-day MA but yesteday's buying registered as accumulation—as with the NASDAQ, this may be the anchor point for a trading range to consolidate the October rally.

SPX Daily Chart
SPX Daily Chart

The blip of Black Friday's action by the juniors has been erased, but its history remains evident on the chart. The best step forward would be for the S&P and NASDAQ to consolidate into new trading ranges to help consolisate the advances from October. The problem is the Russell 2000, which is staring dangerously close to the precipice and doesn't look like it wants to come back.

Trading Week Starts With Weakness For The Russell 2000
 

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Trading Week Starts With Weakness For The Russell 2000

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Comments (2)
Jeff Page
Jeff Page Nov 30, 2021 6:25AM ET
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Short interest on IWM, 4.2 days to cover.
Jeff Page
Jeff Page Nov 30, 2021 6:08AM ET
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Speculation $ is on Q's & SPY.IWM seems to have an unlimited supply of sellers. Sitting on 80% cash.
 
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