Russell 2000 Cleared Resistance on Friday
Friday belonged to the Russell 2000 (NYSEARCA:IWM) as it cleared resistance on higher volume accumulation.
It was the index to do most of the work, and is also the index which is the most extended from its 200-day MA.
For the Nasdaq (NYSEARCA:QQQ)and S&P (NYSEARCA:SPY) it was a question of maintaining the rally and putting more distance to nearest breakout support so that when sellers do return, they have enough room to absorb a loss (e.g. 10%) without a break in this support. The good news for the S&P is that last week’s action was enough to negate the bearish implications from the inverse hammer. Not surprisingly, supporting technicals for both indices remain positive with little in the way of potential divergences to worry about.