Russell 2000 and S&P 500 Successfully Test Breakout Support
Declan Fallon | Feb 13, 2023 18:36
A good end-of-week finish for markets offered positive tests of support to head into next week with. The Russell 2000 (IWM) tagged breakout support is defined by November's swing high and 20-day MA. Volume steadily declined off the reversal from the $199 high - another positive - although the MCD trigger 'sell' was a little disappointing.
The S&P 500 had a smaller distance to travel to test support but managed to repeat the action, including a positive test of its 20-day MA. Also, like the Russell 2000, it finished the week with a MACD trigger 'sell.'
The Nasdaq hasn't retreated as far as the Russell 2000 or S&P 500 and has yet to engage in a test of support. Because of this, it hasn't yet turned in a 'sell' trigger for its MACD but has for On-Balance-Volume. Friday's finish for the index was a neutral Doji, a potential turning point to end the 6-day decline; if not the Doji, then moving averages are there to lend support.
All Indexes are working towards right-hand bases, with current action early steps in the bullish reversal. December rallies haven't consolidated as they continue to push higher, so until this happens, we won't know we have a true bottom in place. However, I believe that the June low was the low of the decline, with a successful retest in October leading into the current rally.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.