Low Key Losses Change Little

Published 07/29/2020, 12:22 AM
Updated 07/09/2023, 06:31 AM
US500
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US2000
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SPY
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IWM
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IXIC
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Aside from the NASDAQ which broke through rising channel support yesterday, other indices remain caught along breakout support. 

The NASDAQ is on a 'sell' trigger in the MACD and a relative underperformance against the Russell 2000, but it has already moved outside of its rising channel where an opportunity to accelerate losses has not yet been taken. 

COMPQ Daily Chart

The S&P had registered a small breakout before it drifted back to support. However such support remains in play despite yesterday's loss and with technicals still net bullish there has yet to be a 'sell' trigger which could encourage a more pronounced downside. 

SPX Daily Chart

The Russell 2000 (via iShares Russell 2000 ETF (NYSE:IWM)) is holding to support which is also its 200-day MA. The breakout hasn't yet materialized but it remains in a good place to do so. Tuesday's loss did not reverse the relative outperformance for this index relative to its peers. 

IWM Daily Chart

We have another day to wait for a reaction in the indices, but we have seen an extended period of flat action in the index which matters most to secular bulls, the Russell 2000. 

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