The Russell ETF could not break out of consolidation, but the other 3 majors did break.
The Russell - being the major small cap index - is an indicator of risk. When the Russell is rising, investors are less fearful. When the Russell is falling, investors are cautious ... That's the basic concept anyways.
I think this Russell chart is showing that maybe people aren't as optimistic as Thursday's rocket ship would have implied. While the 3 biggest indexes broke through strong resistance pretty convincingly, the Russell stayed put ... it tried, but did not succeed. IWM also bounced off its 50 day MA.
In addition to that, Friday's close was less than impressive. I'm betting on at least a bearish start to next week, and possibly for the week as a whole. Jerome Powell, yet again, gave no clear-cut direction to the Fed's interest rate plans, leaving the market to wonder what's going on. All economic indications (and technicals) are pointing towards - at the very least - a strong market correction. I think Powell's speech, mixed with the very poor jobs report, put a bad taste in the markets mouth.
I bought some TVIX yesterday, because I'm thinking Monday might be a little ugly. Looking at this IWM chart makes me feel even better about my TVIX purchase ... for Monday anyways.
The Russell - being the major small cap index - is an indicator of risk. When the Russell is rising, investors are less fearful. When the Russell is falling, investors are cautious ... That's the basic concept anyways.
I think this Russell chart is showing that maybe people aren't as optimistic as Thursday's rocket ship would have implied. While the 3 biggest indexes broke through strong resistance pretty convincingly, the Russell stayed put ... it tried, but did not succeed. IWM also bounced off its 50 day MA.
In addition to that, Friday's close was less than impressive. I'm betting on at least a bearish start to next week, and possibly for the week as a whole. Jerome Powell, yet again, gave no clear-cut direction to the Fed's interest rate plans, leaving the market to wonder what's going on. All economic indications (and technicals) are pointing towards - at the very least - a strong market correction. I think Powell's speech, mixed with the very poor jobs report, put a bad taste in the markets mouth.
I bought some TVIX yesterday, because I'm thinking Monday might be a little ugly. Looking at this IWM chart makes me feel even better about my TVIX purchase ... for Monday anyways.