Small Caps Experience Selling

There wasn’t a whole lot of action in markets after yesterday’s decent gains. The only index to suffer any kind of reversal was the Russell 2000. It holds on to its channel breakout, but the 1% loss will have hurt it.

There wasn’t much to add to the S&P. Today’s action simply consolidated gains near yesterday’s highs.

The Nasdaq was no different. Most of the damage was done premarket, but there was little change after that. Volume was also lighter, confirming the consolidation action in the index.

The Nasdaq 100 also held on to resistance. It’s still a shorting opportunity, but there isn’t much room before they get squeezed.

The outlook for tomorrow is the same for today. Shorts will keep an eye on the Nasdaq 100, while longs may look to take advantage of the Russell 2000 as a value play.