The S&P added near 1%, although the index continued to lose ground against the Nasdaq. However, On-Balance-Volume shows strong accumulation, which should help build bullish momentum.
The Russell 2000 (IWM) is lagging. Yesterday’s selling tipped the hat in favor of bears, but there hasn’t been any follow through lower. Technicals are bullish and there is only dip in favor of bears in relative performance to the Nasdaq. However, this index needs to join the party if it’s not to suffer further rotation out of Small Caps to safer Large Cap stocks
For the rest of the week, look for a rally from Russell 2000, while the S&P and Nasdaq hold ground (or advance further).More By This Author:Russell 2000 Resists Bearish Pressure As Nasdaq Extends Gains
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