Looking for the positives when there aren’t many. The Russell 2000 (IWM) was able to recover some of its intraday losses, finishing on the measured move target derived from the December-January decline. Volume was also down on previous days, suggesting we may have some sellers exhaustion. The index is oversold and Small Caps are starting to outperform both the S&P 500 and the Nasdaq.
The Dow Indstrial Average sold off on confirmed distribution to its 200-day MA, also the swing low for November and January. This index is strongly outperforming the Nasdaq 100, and is well placed for a relief rally sooner rather than later.
Things aren’t so great elsewhere. Both the Nasdaq and S&P have moved beyond their 200-day MAs, turning the latter moving average into resistance.
The other index we are looking at is the Semiconductor Index. The move outside of its prior trading range and into its next one(?) is well established and may still have room ro run.
We are likely near the end of the initial down phase, so a tradable buy is probably here already, if not just a few days away. How far the next rally goes will be of greater importance, and if it can challenge for new all-time highs.