There wasn’t too much damage done to the gains made on Friday’s junior trader watch. Volume was up significantly across indices to register today as a distribution day, but the relative price loss was small. Only action in the Russell 2000 left a mark on the chart.
Even with the selling in the Russell 2000, it remained well above breakout support and held a significant performance advantage relative to the S&P and Nasdaq. Technicals remain favorable with no major bearish divergences to be concerned with.
The S&P had experience a degree of intraday selling which had the potential to undercut breakout support, but by the close of business had managed to scramble back most of the lost ground. By the close of business, selling was not enough to reverse the ‘buy’ triggers in the MACD and On-Balance-Volume.
You’ve now read my opinion, next read Douglas’ blog.
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Investments are held in a pension fund on a buy-and-hold strategy.
SOURCE: Fallon Financial Commentary – Read entire story here.