Despite Mixed Start to the Week, Indexes Remain on Track for Breakouts
Declan Fallon | Jan 18, 2023 00:03
A pause in the New Year rally kept things on track without confirming any trends. The Nasdaq 100 had the best performance among major indexes, but, really, there wasn't much in it for any of the indexes. Volume was below Friday's, so there was no registered accumulation day, but it added to the bullish trend in the on-balance volume.
The S&P 500 finished with a neutral Doji but held on to 200-day MA support. But, it couldn't make back some of the loss in relative performance to peer indexes.
The Russell 2000 (IWM) closed with a Doji at resistance. Of the lead indexes, it has the best technical strength - it just has to deliver with a breakout.
As a final note, as this might prove to be important in the coming days, the Dow Jones Industrial Average lost just over 1% on higher volume distribution. While this index is the closest to making new all-time highs, a shift away from large caps to more speculative growth stocks should be beneficial in the long run.
So, we will wait and see if traders can shift the needle.
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