The Russell 2000 Small Cap Index (IWM) is about to print a 50/200 bullish Golden Cross this week, following the S&P500 SPY ETF. The latter crossed in late July. Both are bullish signposts for equity investors/traders.
Russell 2000 IWM Daily
IWM Chaikin money flow is also mirroring the SPY, S&P500, and Nasdaq-100. In addition, as the line in the upper panel rises, the IWM is starting to outperform the S&P500.
MACD is above its signal line and rising as well, which confirms bulls are in control. Buy the dip.
SPY Daily
Price action is grinding above the largest VBP levels (look left) which now represent major support. Bulls are in control as MACD remains above its signal line, pointing to a potential retest of the February highs.
MACD is above its signal line. Breadth is improving as we discussed in the weekend video. And, the majority of indicators are beginning to turn bullish.
“Futures are flat to Fridays close with little change in data over the weekend. The thing that catches my eye today is a continued lack of size overhead. The top 3 strikes by call OI are <=3300 which is likely why we see the Delta Tilt spiking higher (ITM calls, with a higher market). As August Monthly OPEX is quite small OI we likely won’t see much rolling which is one of the mechanical forces that helps build positive gamma month to month.”
Glenn at Spot Gamma
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Happy Trading,
Vinny
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