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S&P 500, Nasdaq Technicals Remain Net Bullish as Russell 2000 Eyes 50 MA Support

Published 26/09/2024, 05:53
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The Russell 2000 (IWM) had created a resistance break in the move back to the July spike high, but yesterday's loss ended that, opening up the possibility for a double top.

Confirmation won't come until there is a loss of $205, and technicals are net bullish. There is also price support in the nearby 20-day and 50-day MAs.IWM-Daily Chart

Things are a little clearer for the S&P 500. Last week's breakout is still in effect and technicals are net positive. Yesterday's action was narrow and effectively kept things under the radar while lurking at all-time highs. It needs follow-through, but no hurry.

SPX-Daily Chart

Like the S&P 500, the Nasdaq had a quiet day. It's still a few weeks from challenging the July high, but bulls can remain optimistic. Technicals are net positive and the index is outperforming both the Russell 2000 and S&P 500.Nasdaq Composite-Daily Chart

One thing to watch is the Nasdaq Summation Index ($NASI). It has come up against historic peak resistance that is slowly rolling over as a top. Historically, this indicator can get to 500, but at 100 - prior peaks - it's decision time.NASI-Daily Chart

For today, watch what the Russell 2000 does. It's the only index pointing to weakness and it looks like the S&P 500 and Nasdaq are waiting to see what happens. Given the Russell 2000 has already had four consecutive down days, it's due at least one day of buying.

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