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 […]

Non-Cyclical Sectors Outperforming Cyclical Sectors

On April 18 I wrote a piece entitled Where We Stand: A Look at S&P 500 Sectors and Industries which looked at the recent outperformance of more cyclically exposed sectors versus defensive sectors.  What I had found was that defensive sectors like the utilities (XLU) and consumer stables (XLP) had decreasing correlation versus theS&P 500 (SPY) over the […]

Mid-Week Market View – May Selling?

As I sit here early Wednesday morning looking at yesterday's market action and the early trading in European markets, I notice the lack of energy in the tape.  Since putting in a recent bottom last Thurday, the S&P500 jumped higher and last night closed only 13 points off the year to date highs.   Earnings […]

Morning Look At The S&P500 Chart

Last Thursday the S&P 500 held right at the breakout level, 50% retracement, and 21 day exponential moving average of $1336.  Friday's Doji candle and yesterday's constructive bounce (albeit on low volume) is making this chart look fairly stable again.  The best thing about it however is that all we need is one meaningfull selloff […]

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 […]