The () joined the as managed to push to a new closing high (although just shy of a new all-time high). This has been a 3-year journey for the index, and marks an important milestone as part of the secular bull market continuation – which kicked off in 2012 – but started with the generational low in 2009. Only the is left to join the party.
In addition to the breakout, the Russell 2000 ($IWM) enjoyed a return to relative outperformance against the Nasdaq, and booked two consecutive accumulation days to add to the net bullish technical picture. All good here.
IWM-Daily Chart
Little to say about the S&P. It’s chugging along in bullish form. Volume has been quiet, bar yesterday’s confirmed distribution. Technicals are net bullish, including its outperformance relative to the Nasdaq.
SPX-Daily Chart
The Nasdaq is lurking just below its July high and is well-placed to drive a breakout. Yesterday’s modest bullish ‘hammer’ just above its 20-day MA is another reason for optimism.
As with the S&P, it booked a distribution day yesterday, and given gains in peer indices, it’s underperforming relative to them, but not to any worrying degree.
Nasdaq Composite-Daily Chart
For later today, we won’t want to see a break of yesterday’s lows. Modest loses are okay. Intraday loses are fine. But we will want to see a strong last hour to show that buyers are lurking and willing to defend and buy ‘value’.
There are a number of economic data points to influence premarket; if data disappoints, then look for a gap down at the open, but if buyers then step in it could prove to be a very positive day.
#Russell #Breaks #Highs #Bull #Market #Momentum #Grows