This is an abridged version of our Daily Report.
Small-caps follow breadth to new highs
The Russell 2000 hit a new all-time high intraday on Monday. That’s the first 90-day extreme, high or low, for the index in more than three months.
A move to new highs after that long, and with such positive breadth, have been good for stocks.
It also suffered a buying climax
The intraday buying interest in the Russell 2000 did not persist and it reversed to close below its prior two closes. Similar reversals led to some very short-term weakness but wasn’t a major concern over the medium-term.
The Dow is no dud
This is the Dow’s 7th streak of 8 positive days since the 2009 bottom.
For the first time in more than three months, Dumb Money Confidence is higher than Smart Money Confidence. This usually happens when it takes a long time for an uptrend to take root and for trend-followers to recognize it.
Bullish options traders
The Options Speculation Index shows that across all U.S. exchanges, traders placed 24% more bullish trade strategies than bearish ones, the most since early February.
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The post titled Russell Breaks Out But Suffers Buying Climax was originally published as on SentimenTrader.com on 2018-05-15.
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