U.S. Indexes Form Bearish Candlesticks Near Resistance
2023.04.19 03:19
Today’s action finished with low-level losses. Candlesticks were bearish, but this wasn’t surprising, given the tags on resistance. Overall, I’m still bullish on markets, but it may take a little longer before we see resistance breakouts.
The started the day just below 12,250 resistance as it remains inside its mini-handle. On-Balance-Volume remains on a ‘sell’ trigger, and the index is still underperforming the , but other technicals are positive. I would be looking for a breakout over the coming days.
COMPQ Daily Chart
The S&P 500 closed the day with a bearish ‘black’ candlestick. At the end of a rally, the ‘black’ candlestick has a higher probability of acting as a reversal, so one must be cautious here because we have a strong possibility of some downside action in the coming days. Technicals are net positive, and the index continues outperforming .
SPX Daily Chart
The Russell 2000 continues to be rebuffed by its 200-day MA. Technicals are still mixed, not helped by the MACD below the bullish zero line and stochastics below the 50 mid-line. Each on-balance-volume and the ADX are on the verge of fresh ‘sell’ triggers. While the long-suffering relative performance against Nasdaq is changing in favor of Small Cap stocks, it hasn’t fully reversed.
IWM Daily Chart
While I remain positive on the Nasdaq breaking resistance, I find the Russell 2000 problematic. I wouldn’t commit to the Nasdaq without the Russell 2000 surpassing its 200-day MA. The S&P is a bit of a “man-in-the-middle” and could go either way, but I don’t see it as an index to watch now.
