Off the Charts
Yesterday we talked about some faulty technical signals that were developing in the market, but despite small losses in the indices again today the damage so far has been very contained. The S&P (SPY) closed the day 0.26%, basically right at its 8-day moving average. The Russell 200 ETF (IWM) was able to show a positive divergence today, surging 0.69% after breaking down below its 8-day moving average yesterday.
This is a tricky spot in the market as we close out a very strong January and head into February, which is historically a weaker month for the stock market. The first day of the month falls on a Friday, so we will get right into the economic data tomorrow with the non-farm payrolls and unemployment numbers. Right now it's hard to enter new longs after a fast start to the year, but we also have not gotten any downside follow-through....637 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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