Monday, January 30, 2023

Tech Takes Leadership Role As NASDAQ Breaks Out


After Wednesday’s struggles it was good to see Tech Indices take on a leadership role on Thursday.  The enjoyed a clean breakout with a further uptick in relative performance to the and .  While I would like to see this gain matched by the Russell 2000, it was a welcome relief to Wednesday’s negativity. 

COMPQ Daily Chart

COMPQ Daily Chart

The Russell 2000 (via ) managed to recover all of yesterday’s losses, but notably, it wasn’t able to challenge the ‘bull trap.’  Technicals are mixed, not surprising given the prior trading range.  The early optimism in September where the index was outperforming its peers has moved in the other direction.  Bulls will be leaning on the 20-, 50- and 200-day MA moving averages as a launch pad for a breakout rally. 

IWM Daily Chart

IWM Daily Chart

The S&P had posted the strongest reversal candlestick with Tuesday’s ‘gravestone doji,’ but yesterday’s buying almost negated it (along with Wednesday’s sell off).  Today, bulls will have a chance to deliver on this promise and continue the breakout run.

SPX Daily Chart

SPX Daily Chart

Yesterday was a good day, but the promise only delivered for the NASDAQ.  The S&P and Russell 2000 haven’t quite (re-)crossed the bullish threshold but the opportunity is there.  Let’s see if they deliver. 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories