It was left to Large Caps to do the heavy lifting on Monday. The Dow Jones Index was yesterday’s winner as it added over 1% on heavy volume accumulation. The index is still experiencing relative underperformance to Tech indices, but the gain marks a new swing high and an opportunity for momentum traders to get involved with some more defensive stocks.
INDU Daily Chart
The NASDAQ finished the day with a black candlestick–often a reversal candlestick when it appears at the end of the rally, so we need to watch for a gap down today. Volume was lighter than Friday but technicals are bullish. A close above yesterday’s highswould negate the bearishness of the individual candlestick.
COMPQ Daily Chart
The Russell 2000 is back holding breakout support which is also its 20-day MA. Volume was well down on recent trading days but the action is probably enough to consider it a pullback ‘buy.’
IWM Daily Chart
The day finished with momentum traders pushing money into Large Cap stocks as more speculative issues saw a pause in the buying. Too early to say if there is a more concerted effort to rotate money into more defensive stocks but yesterday was a start.
Dow Jones Gains On Heavy Volume Accumulation
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