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Winning risk-on plays

Neither S&P 500 nor Nasdaq could challenge Thursday‘s highs – opportunity to sell was acted upon right off the opening bell. Both decent intraday recoveries failed, and the indices closed on a risk-off mode – taking risk down was visible in the leader Russell 2000 as well.

Smallcaps have though offered great profit opportunities, and Wednesday‘s shallow pullback provided fine fresh entry point following S&P 500 spending much time below successive broken supports before rebounding off the 6,925 area – always better to underpromise and overdeliver when it comes to gains potential. Best of all, smallcaps behavior is the result of slow and steady market breadth broadening while S&P 500 isn‘t making much upside progress, and Big Tech is seeing relative setbacks.

Author

Monica Kingsley

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

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