👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Nasdaq, S&P 500 Retain Bullish Momentum; Russell 2000 Holds on to Gains

Published 19/12/2023, 08:20
US500
-
US2000
-
IWM
-
IXIC
-

"Black" candlesticks are rarely good and we had one yesterday in the Russell 2000 (IWM). The expectation is for an open below today's close, then a close lower than the open.

As part of this bearish setup I will be looking for a gap closure that may result in a bullish 'hammer', but more likely, I would look for a close inside the gap that keeps bears in control.

Buying volume dropped significantly from Friday, but with the holidays fast approaching I wouldn't worry too much about volumes.

IWM Daily Chart

The Nasdaq maintained its momentum, closing with a small 'white' candlestick that continued the rally. Buying volume was down, but it has proven hard to bet against the bull. Technicals remain strongly bullish with little hint of divergence.

COMPQ-Daily Chart

While the S&P 500 enjoyed a day similar to the Nasdaq.

SPX-Daily Chart

Today, I would be looking for more of the same. My day trading experiment registered a second losing day as I got caught up trying to force a sale in both the Nasdaq and Russell 2000 ($IWM).

The latter index was particularly frustrating given the presence of the large breakout gap on the daily timeframe chart. Today I suspect may be more frutiful, but buyers have proven stubborn and all too willing to defend.

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
© 2007-2024 - Fusion Media Limited. All Rights Reserved.