Wednesday: Stocks Up (Except For Small Caps), Bonds Off, Oil Down, Gold Up
Price chart analysis and commentary
The S&P 500:
Price made an early-in-the-session high, then pulled back and spent the rest of the day below it. Three closes above the moving average now — the relative strength indicator (RSI, below the price chart) is diverging negatively from price.
The Nasdaq 100:
No new high for this index despite the ability of the S&P 500 to make it up there today. Three closes above the 50-day moving average is a good look but the underperformance vis a vis the large caps continues.
The iShares Russell 2000 small caps ETF:
The small cap ETF is unable to rise above the 50-day moving average. While other stock indexes hit or approach new highs, this one is not even close. Such a picture casts doubt on extreme bullishness for stocks as a whole, whatever the index.
The iShares 20+ Year U. S. Treasury Bond ETF:
The big bond ETF takes a day off from the recent rally phase and closes down by .51%. Price remains in a basic down-trend mode. Watch for a test of the 85 level (red dotted line).
The United States Oil Fund:
The oil fund closes below yesterday’s trading range with a .88% drop.
The SPDR Gold Shares:
Another up day for the gold shares: +.50%. The price now has nine closes above the 50-day moving average. The 257.50 level will be resistance.
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I write about stocks at Forbes.com.