Small caps, as measured by IWM, are key for the fall and heading into 2024. You can also look at the S&P 600 (SML).
IWM could be forming an inverted head-and-shoulders bottom, going back from the start of 2023. (See the rectangle area of the IWM chart). SPY QQQs, on the other hand, could be forming a head-and-shoulders top. (See rectangle area of the QQQ chart).
That should tell you where we are at–equal potential to see IWM lead us up if clears back over 190, or a more significant down move if fails 180 under the pressure of QQQs should they fail the head-and-shoulders neckline.
Our MarketGauge quant models are aside in small cap all-stars, yet long small-cap earnings growth. This means that the strength is in the stocks that have merit based on earnings and not as correlated to the indices.
Have a listen to August 24th live coaching session where we cover the indices, economic modern family, and market outliers. (Make sure you’re logged in to MarketGauge to access the link.) And stay tuned as Monday August 28th on the close of the day, as Mish will be guest hosting for David Keller on StockCharts TV’s The Final Bar.
For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.
If you find it difficult to execute the MarketGauge strategies or would like to explore how we can do it for you, please email Ben Scheibe at Benny@MGAMLLC.com.
“I grew my money tree and so can you!” – Mish Schneider
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Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.
Mish in the Media
Mish looks at a selection of popular instruments and outlines their possible direction of travel in this appearance on CMC Markets.
Mish talks NVDA and “Trading the Weather” in these two appearanceson Business First AM.
Read Mish’s commentary on Gold in these two articles from Kitco.
Mish and Nicole discuss where to park your money, barring any watershed event, in this video from Schwab Network.
On the Friday, August 18 edition of StockCharts TV’s Your Daily Five, Mish covers bonds, the dollar, risk-off indications and several key commodities with actionable levels to consider.
Mish joins Maggie Lake of Real Vision to discuss what rising bond yields mean for investors across the market landscape, what comes next for stocks and commodities, and why she is taking profits here in the growth and AI stocks.
Mish shows why January and now the July reset worked in this appearance on Business First AM.
Mish discusses Alibaba’s stock price in this appearance on CNBC Asia.
In this guest appearance on David Keller’s The Final Bar on StockCharts TV, talks higher rates and why China may deserve a second look for investors.
Mish discusses inflation, bonds, calendar ranges and places to park your money on the Benzinga Morning Prep show.
Mish covers why August is a good time for caution in this appearance on Business First AM.
Mish and Jared go over oil and what might happen with small caps and regional banks in this appearance on Yahoo! Finance.
Coming Up:
August 28: Yahoo Finance, Before the Bell & Chuck Jaffe, Money Show & Making Money with Charles Payne, Fox Business & guest host on The Final Bar, StockCharts TV
Mish will be on break starting August 30 and return Tuesday, September 5th.
September 7: Singapore Breakfast Radio, 89.3 FM
September 12: BNN Bloomberg & Charting Forward, StockCharts TV
September 13: Investing with IBD podcast
October 29-31: The Money Show
ETF Summary
S&P 500 (SPY): 440 now back to pivotal.Russell 2000 (IWM): Popped off the key support. 185 pivotal.Dow (DIA): Will watch to see if it can get back over 347.Nasdaq (QQQ): 363 pivotal.Regional Banks (KRE): Still needs to get back over 44 to be convincing.Semiconductors (SMH): 150 back to pivotal.Transportation (IYT): 239 still support to hold, with 252 biggest overhead resistance.Biotechnology (IBB): Compression between 124-130.Retail (XRT): Has been and remains to be an underperformer and concern going forward.
Mish Schneider
MarketGauge.com
Director of Trading Research and Education