S&P 500 Nears Historic 10% Above 200-Day MA; Nasdaq, Russell 2000 Break Out
2023.12.14 04:12
With the Fed signaling rate cuts for 2024, yesterday was another good day for markets, with the () cashing in on its resistance pressure with a 3%+ gain. In doing so, it easily surpassed the August swing high on higher volume accumulation.
IWM-Daily Chart
The had already posted solid gains, but it was able to add to its push higher for a fifth day in a row. With the gain came a new MACD trigger ‘buy’ to return technicals to a net positive state.
COMPQ-Daily Chart
The has extended itself to 9.2% above its 200-day MA and needs to be tracked to see when it reaches an historic extreme (above 10%); this is a good time to sell ‘covered calls’ or take profits on existing positions.
SPX-Daily Chart
My day-trade experiment was done before I could take advantage of the Fed’s reaction. The Russell 2000 trade was well-telegraphed, but I was not in a position to benefit. I suspect we will see some profit-taking after a sequence of profitable days, this will make day trading difficult as we will probably see some inconsistent action.
