Some days markets move, some days they don’t – this was one of those latter days.
There wasn’t much going with today’s index action, with cryptocurrencies hogging the headlines. The Nasdaq remained on breakout support.
The S&P remains at the upper part of Monday’s breakout range. Technicals are net positive, and the index is well positioned to gain.
The Russell 2000 lost ground, sending the index back to its 50-day MA. The index still has to challenge the ‘bull trap’ and relative performance against the Nasdaq ticked lower. While it’s the weakest of the lead indices, selling volume was relatively light.
The index to watch is the Russell 2000. With the S&P at highs, things can stay positive even if the index moves sideways, but should the Russell 2000 continue to trickle losses, it will eventually drag the other indices down with it.