NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

S&P 500 Eyes Breakout, Nasdaq Pauses, Russell 2000 Hesitates: What Lies Ahead?

Published 27/07/2023, 08:27
US500
-
US2000
-
IWM
-
IXIC
-

The headline would have been a small loss, but S&P 500 action over the past week and a bit have been for an index running alongside upper channel resistance, looking ready to break through higher. Technicals remain net positive, although the MACD is close to a new 'sell' signal. Even if this were to materialize, I would be surprised if it brought any serious selling and may offer a better buy-the-dip opportunity.

SPX Daily Chart

The Russell 2000 (IWM) didn't experience the modest selling the S&P 500 and Nasdaq did and managed to post a decent enough white candlestick, but buying volume was relatively light.

IWM Daily Chart

It's still a slow burn in the bullish relative performance shift versus the S&P 500, but On-Balance-Volume is moving more strongly in bulls' favor. More significant is the weekly resistance at $197, but we need to see what happens on Friday to confirm this.  

IWM Weekly Chart

The Nasdaq had pulled back from its last tag of channel resistance, so it had perhaps a little more 'value' to offer potential buyers than either the S&P 500 or Russell 2000 ($IWM), but it didn't deliver on this. The MACD trigger remains on a 'sell' with a bearish divergence and is underperforming relative to the S&P 500. Vacation volume clouds the issue a little, but it looks like buyers want to go for Large Caps over Tech stocks.

COMPQ Daily Chart

My next post won't be until next Tuesday at the earliest, so the end-of-week finish in the Russell 2000 ($IWM) is perhaps the most important thing to track. I want to see a breakout on a weekly time frame for this index - if not this week, then next.

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.