NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

S&P 500 Breaks Out, Russell 2000 Builds Upon Bullish Cross

Published 2023-05-19, 12:33 a/m
US500
-
US2000
-
NQZ24
-
IXIC
-

If you missed the morning or were waiting for confirmation, well the S&P 500 delivered a solid breakout yesterday, albeit on modest volume. The development came with a MACD trigger 'buy' and On-Balance-Volume 'buy' signal, leaving technicals net bullish.

SPX Daily Chart

The NASDAQ Composite added to its breakout with another decent white candlestick on a 1.5% gain.  This added to the technical strength of the index.  The only disappointment was the generally light buying volume.

COMPQ Daily Chart

The Russell 2000 ($IWM) built on Wednesday's breach of its 50-day MA.  There is still lots of work to do before the index clears $180 and begins a right-hand base.  Technicals are net bullish although the index is still underpeforming relative to the Nasdaq and S&P.

IWM Daily Chart

The coming days will be about consolidation when sellers return.  We have a solid breakout in the S&P 500, a consolidated breakout in the Nasdaq, and a bullish cross of the 50-day MA for the Russell 2000.  All of these point to a positive few weeks (and months) ahead.  Getting back to 2021 highs seems reasonable from here. 

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.