We started to see a little easing as indices approach September highs.
Ideally, we would like to see some sideways action or ‘handle’ to consolidate gains from the reactive rally off September lows, so if things go quiet here I wouldn’t be too concerned.
For the Nasdaq(NYSEARCA:QQQ), selling volume eased in contrast to yesterday’s higher volume accumulation. Technicals are all net positive, including an uptick in relative performance against Small Caps. Tech stocks are looking to regain their mojo, which is good news for Tech stock holders looking for new all-time highs.
The Russell 2000NYSEARCA:IWM) had already breached its September high – but not yet its all-time high – as it starts to ease back to let other indices ‘catch-up’ with it. Sellers did not dominate with volume well below prior buying. There was a relative under performance to both the Nasdaq and S&P, but there wasn’t any real damage done to the bullish breakout.