The daily chart of the NASDAQ Composite Index looks constructive as it successfully tested its 50-dma on an intraday shakeout yesterday and then moved higher today. But underneath the surface of this market, there has been a great deal of carnage in formerly leading groups. Meanwhile, financials and semiconductors, for the most part, keep the indexes buoyant as the market displays some obvious bifurcation.
The strength in financials helped take the small-cap Russell 2000 Index back up through its 50-dma, as we can see on the daily chart of its proxy, the iShares Russell 2000 ETF (IWM) below. You might notice some similarity between the IWM chart and that of the XLF, further below.
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