After reviewing the recent price action and several charts of key stock market indices, I’m taking a near-term cautious stance on the stock market. That is, until the following concerns resolve themselves.
In particular, it appears that the small cap Russell 2000 Index (INDEXRUSSELL:RUT) and Mid- Cap Index ETF (NYSEARCA:MDY) are failing again.
I was looking for recent breakouts on these two charts to extend higher, but that isn’t happening. They have both failed to see follow through and are fading.
CHARTS: Russell 2000 Index & S&P Mid-Cap ETF (MDY)
The PowerShares Nasdaq 100 ETF (NASDAQ:QQQ) is also vulnerable after fulfilling upside move based on ABC pullback. I talked about this in my newsletter. Glaring daily momentum divergences here for the QQQ’s.
PowerShares QQQ Chart
Feel free to reach out to me at arbetermark@gmail.com for inquiries about my newsletter “On The Mark”. Thanks for reading.
Twitter: @MarkArbeter
The author may have positions in related securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
