S&P 500 Nudges Breakout But NASDAQ Closer To Breakdown

Published 07/23/2020, 12:38 AM
Updated 07/09/2023, 06:31 AM
US500
-
US2000
-
SPY
-
IWM
-
IXIC
-
SOX
-

The S&P didn't break resistance with any great fanfare yesterday, and the move lacked volume, but a breakout is a breakout. Technicals are in good shape with bullish momentum particularly strong, and a three month rising accumulation trend.

SPX_Daily Chart

The NASDAQ is riding along channel support albeit closer to a breakdown than a breakout. The MACD has flat-lined, although the last signal was a 'buy' trigger.   The index is underperforming relative to the Russell 2000 which is a concern given how far behind the Russell 2000 is from marking new all-time highs.

COMPQ-Daily Chart

Speaking of the Russell 2000 (via iShares Russell 2000 ETF (NYSE:IWM)), it managed a small base breakout but it hasn't cleared resistance of the June swing high. Trading volume was light, but technicals are net positive and while stochastics are not overbought they have held above the bullish mid-line. 

IWM_Daily Chart

The Semiconductor Index did little yesterday but it has the strongest breakout of the lead indices. Not surprisingly, technicals are net positive. 

SOX_Daily Chart

While we had breakouts in indices yesterday I wouldn't call them substantial moves past resistance. Breakouts should occur with fanfare and what we have seen in the S&P and Russell 2000 wouldn't classify as such. These aren't the kind of moves which encourage buying but there is no reason not to hold existing positions.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.