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Large Caps Keep Bullish Momentum Running

A Tale of Two Cities as Large Caps keep bullish momentum running with higher volume accumulation, while Techs – influenced by Semiconductors – edge lower.

 

By Dr. Declan Fallon

The S&P (NYSEARCA:SPY) maintained bullish technicals as it added a few points to yesterday’s gain. A push to challenge 2,140 looks well on the cards.

What could hold things back are Tech indices. The Semiconductor Index had a weak day with over a 1% loss. Relative performance continues to fall off sharply.

 

Because of weakness in Semiconductors, the Nasdaq (NYSEARCA:QQQ) and Nasdaq 100 suffered relative distribution, but these indices are caught in a no-mans land.

 

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The Russell 2000 (NYSEARCA:IWM) is caught in the middle with its reversal doji at channel resistance. However, it’s enjoying strong relative gains. A consolidation from here back to rising channel support would offer bulls a strong footing to mount a challenge on breaking the 200-day MA and for a move to 1,200s.

For tomorrow it will be about which side wins out. Large Caps attracting more buyers in a push to new highs, or Tech taking further losses.