S&P 500, Nasdaq to Decide If Russell 2000 Can Break Inverse Hammer Spike
2024.12.03 03:02
The () has reached a point where it has successfully rebuffed the bearish inverse hammer with a series of narrow-range candles near its highs and is now ready to challenge the all-time high.
Technicals are net bullish; On-Balance-Volume is in an accumulation trend as the index outperforms the and .
The Nasdaq registered a new breakout on the back of a new trigger ‘buy’ in the MACD. On-Balance-Volume is trending higher (as with peer indices) and it’s also attempting a new run of relative outperformance against the S&P 500.
The S&P 500 posted a small gain although this will have hit the headlines as a new all-time high. Where the index is losing ground is in its relative performance against the Russell 2000 ($IWM) and Nasdaq. However, this should be viewed as net bullish as money rotates into more speculative equities.
Semis Look to Push Past Resistance
The finished at moving average resistance after looking ready to push through. I think it will be hard for the indices to sustain extended advance without participation from Semiconductors, but I’m happy for the market to prove me wrong here. On a positive note, there was a MACD trigger ‘buy’, but there is a whole pile of resistance still to overcome.
On a positive note, the is working a breakout in alignment with the – so the tenets of Dow Theory are aligned in favor of bulls.
A measured move target for the Dow Transports is 22K, and as long as the index continues its upward ascent it will bring the Dow (and S&P 500) with it.
The next move I’ll be watching for is for the Russell 2000 ($IWM) to eat into the spike high from the inverse hammer. For this to happen, the S&P 500 and Nasdaq will need to maintain their current form. If it can do this, then maybe even the Semiconductor Index won’t get in the way.
