iInvest® Stock Market ALERT
In our February 6th iInvest Alert, we pointed out that the stock market downturn that took place was just a healthy consolidation due to severe overbought conditions. The stock market had moved up too far to fast.
However, due to certain technical indicators iInvest® tracks, we noted that the sudden downturn was not significant enough to trigger a TacticalSHIFT®, and the market should resolve itself to the upside in the coming weeks.
As you can see in the chart below, the Russell 2000 Small Cap Index (a leading indicator) has already broken out to the upside making new highs.
Russell 200 Small Cap Index
The Nasdaq 100 and the Dow Jones Industrial Average are not far behind.
Nasdaq 100 Index
Dow Industrial Average ETF
As you can see in the graph above, the DOW came up from its low a few weeks ago. It then came back down to find a higher low, showing a bullish trend reversal. It has successfully bounced off the support and is headed back in the upward direction with it’s support not far below it, lowering it’s immediate risk.
Written by Craig Dillon
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