S&P 500, Nasdaq Eye More Gains; Russell 2000 Must Rally to Avoid Rotation Risk
2024.12.05 02:52
Yesterday belonged to the . There was a good opening gap and the index kicked on nicely on higher volume accumulation. Technicals are net bullish. Healthy action with no bearish divergences flagged.
The added nearly 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 () is lagging. Yesterday’s selling tipped the hat in favor of the bears, but there hasn’t been any follow-through lower.
Technicals are bullish and there is only a 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 ($IWM), while the S&P and Nasdaq hold ground (or advance further).
