Russell 2000 At Crossroads Still

This morning's up-gap open may be enough to rally stocks higher and in specific the SPX to a $1400 area. The Russell 2000 small cap index remains at a critial level: right at the 50 day moving average (yellow line) and at multiple support and resitance trend lines (red lines all over).   What we […]

Huge Indecision Area On Major Equity Indices

The Russell 2000 is at the 50 day moving average as well as a horizontal and uptrend resistance area.   The S&P 500 has now put in three weekly doji closes in a row….indecision is an understatement.  While it can break in either direction at any time, this choppy sideways action can also continue.  Our […]

Various Market Thoughts – Time To Shorten Trading Horizon

Despite a bounce in the major averages yesterday, the market remains in no-man's land and is churning away. Given all the headwinds I discussed here tirelessly I think the direction of stock prices over the next two months is flat to down.  As such we are increasing our focus on shorter-term trading in Bucket 1 […]

What is the Russell 2000 Index Telling Us?

On May 2nd 2011 the Russell 2000 (RUT) small-cap index landed at a fresh all-time high.  From the March 2009 lows to the May 2011 highs, the measured move equals more than 150%.  The S&P 500 in comparison rose just over 100% over the same time period.    As the often weaker summer months for […]

Russell 2000 Broke Below 8 Month Uptrend

Note yesterday the Russell 2000 broke below the uptrend line in place since last September and also broke below the 50 day moving average (yellow line).  Just something to keep in mind.

Levels To Watch On SPX, RUT, IYT

Good Morning Again! Here are the levels I am watching on the S&P500, the Russell 2000, and the Dow Transports ETF (IYT). SPX Support: 1320, 50 day moving average (yellow line), 1310, 1300.   SPX Resistance: 1340, 1345.   I still see a potential final SPX upside target somewhere between 1380 and 1450. RUT Support: […]

Monday Morning Market Thoughts

Last week's market action was weak, as displayed by bearish engulfing candlesticks on the weekly charts of major U.S. indices.    The Russell 2000 is despite choppy action very close to again making lower lows since the beginning of May and the SPX and NDX look very much the same.   This morning I am […]

Another Technical Look At The Russell 2000

The most recent stock market rally that started on May 25th continued in full force yesterday, Tuesday May 31st.  While end of month forces may have been at work, it speaks positive nontheless. The major U.S. equity indices closed at the highs of the day and as such overcame a good amount of technical resistance […]

Right Here Right This Minute: S&P 500 Key Area

Note the key area the S&P 500 (and the other major U.S. indices for that matter snuck to this morning.  It's hold or fold time here if you ask us.  A bounce will become obvious if it happens and at that time we will look to names like Apple (AAPL) and VMware (VMW) on the […]