Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Was The Black Friday Selling Meaningful?

By Declan FallonStock MarketsNov 29, 2021 12:29AM ET
www.investing.com/analysis/was-the-black-friday-selling-meaningful-200609770
Was The Black Friday Selling Meaningful?
By Declan Fallon   |  Nov 29, 2021 12:29AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Holiday trading rarely marks the start of a major trend change as junior traders look after desks until their bosses return from the holiday.  But bosses won't be happy with the shift their minions have put in over the Thanksgiving weekend.  Last Wednesday's gains do feel like a long time ago.

The Russell 2000 (via IWM) is the barometer for the broader market. It really has no more room for maneuver as the index gapped down to its 200-day MA with technicals net bearish.  Relative performance has also moved sharply against it relative to the NASDAQ and S&P.  Volume climbed to register as distribution, adding to the misery.  After waiting so long for the breakout in 2021, the index now finds itself looking in the other direction. 

IWM Daily Chart
IWM Daily Chart

Losses in the NASDAQ weren't as dramatic as for the Russell 2000.  Technicals are more mixed with 'sell' triggers in the MACD and ADX offset by continued bullishness in On-Balance-Volume and Stochastics.  The index is underperforming against the S&P, but it has spent the past 6-months moving back and forth on this.  Unlike for the Russell 2000, it hasn't lost its breakout. 

COMPQ Daily Chart
COMPQ Daily Chart

The S&P experienced losses of over 2%, which leaves the chart with a large, ugly scar after weeks of small gains.  However, the price bar left an impression there wasn't too much damage done to supporting technicals with only the MACD on a 'sell' trigger.  The October breakout still has some wiggle room with the 50-day MA nearby.  I suspect we will be looking at a test of the latter moving average over the coming week.

SPX Daily Chart
SPX Daily Chart

Funnily enough, the Dow Industrial Average has a chart which looks closer to the Russell 2000. The index has lost its breakout and undercut its 50-day MA.  The Dow Jones Industrials is looking at a test of the 200-day MA as its next support play.

INDU Daily Chart
INDU Daily Chart

Heading into this week, the Russell 2000 is the index to watch.  It took so long for it to participate in the rally, only for the breakout to collapse in on itself.

If losses continue it will only go on to pull the other indices lower.  Will junior traders be getting their Christmas bonus? We will see if their actions placed them on the right side of the trend. 

Was The Black Friday Selling Meaningful?
 

Related Articles

Was The Black Friday Selling Meaningful?

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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 (2)
Kaveh Sun
Kaveh Sun Nov 29, 2021 2:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I bought iwm at break out. Thinking it will run much more. Got stopped out on Friday for a small loss.
Jeff Page
Jeff Page Nov 29, 2021 2:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
me too! first up in October/November did very well and rolled out and up. triggered stop - 30% on calls.
Jack Zydron
Jack Zydron Nov 29, 2021 1:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
green coming
AY Haych
AY Haych Nov 29, 2021 1:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Always and forever
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email