Buyers Make An Appearance, But Little Change
2022.06.22 09:46
If we are going to get a swing low of consequence we are going to need days where buyers can build off opening gaps more than what was achieved yesterday; yes, there were opening gaps – but there was little follow through higher.
For the NASDAQ, the opening gap was substantial, but the resulting gains were unable to challenge the May swing lows. On a positive front, there was a new ‘buy’ trigger in On-Balance-Volume to go with an acceleration in the relative performance over the S&P.
COMPQ Daily Chart
The S&P similarly gained with a gap at the open. This came with an acceleration in the relative performance over the Russell 2000 although other technicals remain bearish.
SPX Daily Chart
With the NASDAQ and S&P gaining in relative terms over the Russell 2000, this then means the Russell 2000 didn’t do as well as its peers. The Russell 2000 closed with a doji, which means the opening gap wasn’t able to hold as it did for the NASDAQ and S&P, but the lows at $162.78 ($IWM) were retained.
IWM Daily Chart
I think we have a low of consequence, although yesterday’s action wasn’t exactly knocking it out of the park. It will take more than a single day to confirm the low, but at least it was a positive start.
