Week 27 Market Roundup —Identifying leadership in the market

Last week in my Week 26 Market Round up, I stated the grinding down move is a bullish character with possible shortening of the downward thrust as a bullish scenario. This bullish scenario did play out as per what I mentioned.

The reversal up swing from last week accompanied by consistent demand signature, as shown below. S&P 500 is likely to see a breakout of this immediate resistance at 3156 to test the buying climax high at 3230 formed on 8 Jun 2020. The big trading range between 2925–3230 is still well in play.

It is worth to note that so far NASDAQ has been the leader, followed by S&P 500, RUSSELL 2000 while DOW is the weakest among these 4 major indices. I pay close attention to the NASDAQ in case it become the one to lead the way down. Also, RUSSELL (small cap) is showing decent strength and we can expect rotation into small cap in focus too.

Based on the relative performance from Finviz, Technology and consumer cyclical are still leading the rest.