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S&P 500, Nasdaq Gap Fills on Horizon; Russell 2000 Stuck in a Trading Range

Published 06/21/2024, 12:43 PM
US500
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DJI
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US2000
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IWM
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IXIC
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It was to be expected that sellers were to make a concerted appearance at some point in June and today was the day. It was a rough day for me on the day trading front; overtrading, but managing to close with a profit thanks to the gain of the Dow Jones Industrial Average.

SPX-Daily Chart

The S&P 500 and Nasdaq took the biggest hits on the day, but there is plenty of support to work with despite today's higher volume distribution selling.Nasdaq Composite-Daily Chart

The Russell 2000 (IWM) took a modest loss. This time, the trading range offers protection, so its significance is reduced. Volume did register as distribution and technicals are net negative. It may take a test of the 200-day MA to initiate a rally to break the trading range, but for now, expect further scrappy action.

IWM-Daily Chart

There may be some follow-through lower for the S&P 500 and Nasdaq with last week's gaps a likely area to be filled over the coming days. Such action would coincide with tests of 20-day MAs, increasing the likelihood of such moves. As for the Russell 2000, it's anyone's guess.

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