I got burned badly on my day trade expectations for Friday, but it was another solid end-of-week for market bulls.
For the S&P 500, this meant further gains in relative performance over the Russell 2000 (IWM) on overbought stochastics.
The Nasdaq took a slightly longer route to banking its weekly gain, experiencing a weekly intraday spike low.
The Nasdaq is outperforming the S&P 500 (outperforming the Russell 2000) and like the S&P 500, it enjoys solid technical strength.
I had expected more from the Russell 2000 ($IWM) but it spent another week experiencing further indecisiveness, closing with a "spinning top".
However, the end-of-week finish is close enough to $195 support to consider support as holding.
Technicals are a little more mixed with On-Balance-Volume switching to a 'sell' trigger as the index underperforms relative to peer indexes.
As a final note, one index performing well is the Semiconductor Index. It has defended its 20-day MA with considerable ease since October and should have enough momentum to return to a challenge of its January high at 4,566.
For the coming week, we may see a slowdown in the weekly advance, but bulls have the edge.
The post-COVID hangover bear market is near an end, but it may be a case of three steps forward, and two steps back.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.