Hard To Get Excited About Major Indices As Rallies Continue

Published 08/24/2020, 12:06 AM
Updated 07/09/2023, 06:31 AM
US500
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DJI
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US2000
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IWM
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IXIC
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Things tick along in markets with little fanfare; the NASDAQ and S&P both registered gains on the final day of trade last week, but the Russell 2000 took a small loss—though not enough to reverse the breakout.

The small loss in the Russell 2000 (via iShares Russell 2000 ETF (NYSE:IWM)) was also came with registered distribution, but overall volume was light—so probably not too damaging. To compound the weakness there were 'sell' triggers in the MACD and On-Balance-Volume to go with the ongoing underperformance of the index relative to both the S&P and NASDAQ.

IWM Daily Chart

The S&P registered a small accumulation day, but the gain didn't fend off the MACD trigger 'sell' from earlier last week. However, one indicator which did kick off strongly in bulls' favor was Rate-of-Change (ROC); after weeks around zero there was kick towards +8.6%. 

SPX Daily Chart

The NASDAQ also registered a surge in ROC, but it's already well above the bullish zero line. The MACD is bullish along with other technicals. 

COMPQ Daily Chart

The one index which may offer buyers a trade is the Dow Jones Industrial Average. There was a bounce off breakout support which also coincided with a successful test of the 20-day MA. Other technicals are green although the MACD is on the verge of a 'sell' trigger—but there should be enough for bulls to work with. 

INDU Daily Chart

Going forward, buyers maintain an edge but for how long can it continue? Until we see a more pronounced turn in technicals, particularly the long standing accumulation trends in On-Balance-Volume, then further price gains look likely. 

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