Typically at this time of the year, first half of June, NASDAQ and Russell 2000 are often leading DJIA and S&P 500. Historically, the month of June has been kinder to technology and small-cap stocks than others. Sure, June has been quite robust so far, but it has been DJIA and S&P 500 leading the charge higher. Their strength is also confirmed by NYSE and S&P 500 cumulative Advance/Decline lines at new highs already. NASDAQ and Russell 2000 cumulative Advance/Decline lines are weaker have not exceeded the highs reached last year. At the least, NASDAQ’s Advance/Decline line likely needs improvement for the market to make any meaningful headway.
As always, please use protective buy and sell stops when trading futures and options.
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