Russell 2000 Rockets Past Key Levels; S&P 500, Nasdaq Take On August Highs
Markets clearly liked the latest inflation data with substantial gains for indexes. Leading the charge was the Russell 2000 (IWM) that added over 5% on the day.
Not only did it generate a large gap, but it also cleared its 50-day MA and took out the last swing high on higher volume accumulation.
Trading volume has soared over the last couple of months and is well up on summer trading.
Technicals are net bullish and the index is now attempting to outperform the S&P 500, last tried in November and late September, but yet to succeed. The crash risk from the end of October is looking like a distant memory.
The Nasdaq gained over 2%, and is in the process of challenging the August swing high. Technicals are in good shape and the index is nicely shaping up the right-hand side of its base.
The S&P 500 has already surpassed the November swing high and is in the process of challenging the August swing high. Like the Russell 2000 ($IWM), volume climbed to register as accumulation on bullish net technicals.
While the week is still young it will be interesting to see how the Russell 2000 ($IWM) plays out by Friday on the weekly time frame.
Certainly, yesterday's gains will do much to put a solid bottom across the indexes and we can now look to the end of the market declines started in 2022.
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