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S&P 500, Nasdaq Inch Higher as Russell 2000 Braces for Upside Follow Through

Published 13/12/2023, 08:23
US500
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US2000
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IWM
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IXIC
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I'm doing a bit of intraday trading as part of TopStep's Trading Combine just to see how feasible day trading is. One thing I have been waiting for is the upside follow-through in the Russell 2000 (IWM).

I have watched as sellers have attempted, and failed, to undercut the swing low of the 'bull flag'.

I have so far managed to stay on the right side of the intraday trend, although it feels like a decent push higher is not far away. Technicals are all net positive and the index is outperforming peer indexes.

IWM-Daily Chart

Action for other indexes has been more clear-cut, the Nasdaq managed to close at a new high on the fourth day of gains. Buying volume has dropped a little on yesterday's action and we still await a new 'buy' trigger in the MACD.

COMPQ-Daily Chart

The S&P 500 also closed at its highs, but did at least manage a new MACD trigger 'buy'.

SPX-Daily Chart

If there is a warning for bulls it's that breadth metrics like the Percentage of Nasdaq Stocks Above their 50-day MA have moved to a 'sell' trigger. Overbought-bready metrics like these are good warning signs for pending tops, so caution is advised if long.

NAA50R-Daily Chart

When we do get some selling it's going to be hard, but until we do, markets will keep pushing higher.

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