Russell 2000 Remains Bullish; S&P 500, Nasdaq Bulls Look to Defend Breakout Gap

Up to now, the had been doing most of the running, marked by the relative performance gains of this index against the and , but yesterday was the first stall in this rally.

Technicals for the Russell 2000 are net positive and remain so despite yesterday’s loss. The index is well set up for a breakout next week – I wouldn’t be too concerned with yesterday’s action.

IWM-Daily Chart

The Nasdaq is defending the substantial breakout gap from last week and will soon have the 20-day MA to lean on as part of this defense.

There are active ‘sell’ triggers in the MACD and On-Balance-Volume to work off, but other technicals are positive.

COMPQ-Daily Chart

The S&P 500 also has a breakout gap to defend with a similar technical picture as the Nasdaq, although On-Balance-Volume is still on a ‘buy’ trigger.

And as with the Nasdaq, I will be looking to the 20-day MA to play an active supporting role.

SPX-Daily Chart

There isn’t a whole lot to add, other than markets remain near all-time highs and it will only take one good day to consume the losses of the last few days.