Top News

Russell 2000, NASDAQ Rallies Defended; S&P 500, Dow Trade Within Channel

There wasn’t a whole lot to Friday’s action, but the one thing which was important was the successful defense of the Russell 2000 channel breakout. As a bonus, the NASDAQ is running alongside channel resistance and is ready to accelerate higher. The S&P is caught in the middle of its channel and Friday’s action didn’t change anything.

The Thursday breakout in the Russell 2000 (via iShares Russell 2000 ETF (NYSE:IWM)) gave up nearly 0.5%, but didn’t reverse any of the earlier bullish technical picture.

The NASDAQ is edging up along its channel and has probably done enough to negate the shorting opportunity–marking it as a small loss. Trading volume was light but technicals are in good shape (except for a short play!).

I’ll mention the S&P, only because it didn’t really do anything.

It was a similar picture for the Dow Jones Industrial Average; price inside the channel.

As a final note, the Semiconductor Index is testing the most recent swing high, although it closed with a slight loss. There is a risk of a double top, but this will depend on further losses coming in quick succession.

For tomorrow, we will want to see the Russell 2000 post gains which maintain the breakout, then have the NASDAQ follow on with a breakout of its own. Large Caps have their own story to tell, but next week is unlikely to be the time.

Russell 2000, NASDAQ Rallies Defended; S&P 500, Dow Trade Within Channel

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.

Related Articles

Back to top button
Close
Close