Dow Breaks Rising Support Channel; Small Caps Prepping For More Gains

The
Dow Jones Industrial Average fell outside of its rising channel and into challenging the January 'bear trap.' It's the first of the lead indices to fall outside of its rising channel. Volume climbed to register as distribution with a MACD trigger 'sell', On-Balance-Volume 'sell', and ADX is on a 'sell' trigger. Relative performance remains very weak.

INDU Daily Chart INDU Daily Chart
The S&P also racked a 1% loss but this didn't break the rising channel or undercut breakout support. Volume registered as distribution with 'sell' triggers in the MACD and +DI/-DI.

SPX Daily Chart SPX Daily Chart
The NASDAQ took a larger hit with nearly a 1.8% loss. While it racked up a larger one day loss it only suffered a MACD trigger 'sell'—helped by the outperformance of the NASDAQ against its peer indices which is offering it some protection.

COMPQ Daily Chart COMPQ Daily Chart
While indices experienced losses, the decline in the Russell 2000 (via i
Shares Russell 2000 ETF (NYSE:IWM)) was not too damaging and selling volume was light. Technicals are net bullish and this is helping drive a bullish return in relative performance

IWM Daily Chart IWM Daily Chart
For today, Small Caps look to be prepping for further gains with money cycling out of Large Caps into more speculative issues.