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S&P 500, Nasdaq, Russell 2000 Hold Ground, Setting Up a Bullish Black Friday

Published 22/11/2023, 07:59
US500
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US2000
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IWM
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IXIC
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While coming in as a technical distribution day, the generally low volume yesterday was a sign that Thanksgiving trading has come early. I won't be expecting much until next Monday, but Black Friday is more likely to be bullish.

The Russell 2000 (IWM) experienced the largest loss. The 50-day MA is a potential support area although it may not be needed.

IWM-Daily Chart

Bears could view yesterday's doji in the Nasdaq as a bearish harami cross, one of the most reliable reversal signals. If this was to be true it would need a gap lower to confirm. The good news is that there is plenty of support to lean on with the 20-day MA a probable level to test should weakness emerge.

COMPQ-Daily Chart

It's a similar story for the S&P 500 as it returns to a relative outperformance against the Russell 2000. Technicals are net positive and the potential for a bearish harami cross reversal is there as it is for the Nasdaq.

SPX-Daily Chart

It has been a strong advance from the October low. The attempt at a correction in early November was quickly snuffed out, will now be the time we see this happen?

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